Finer clips weaken but in­crease on hori­zon

Warwick Daily News - South West Queensland Rural Weekly - - News -

MIXED re­sults have been felt across the wool mar­ket, lead­ing the Eastern Mar­ket In­di­ca­tor to fin­ish 21c/kg lower at 1992c/kg clean.

Aus­tralian Wool Net­work tech­ni­cal man­ager Kelvin Shel­ley said poorer qual­ity

16.5 mi­cron and finer clips felt the brunt of the de­cline, dic­tated by Euro­pean in­ter­est.

“There’s a lot of bur and seed in the wool in the mar­ket, with high vegetable mat­ter,” he said.

“Peo­ple got caught out see­ing the price drop rapidly, par­tic­u­larly if wool wasn’t sound in length or strength in the finer mi­cron range, which at­trib­uted to the pass-in rate.”

Last week’s card­ing was also a “real strug­gle” ac­cord­ing to Mr Shel­ley and eased off on pre­vi­ous weeks.

The 17-mi­cron in­di­ca­tor felt the largest fall last week, drop­ping 49c/kg to fin­ish at

2773c/kg.

The 20 mi­cron was the only in­di­ca­tor to end on a higher note in all sell­ing cen­tres, in­creas­ing by 4c/kg to

2221c/kg in Mel­bourne. Mr Shel­ley said the broader types fluc­tu­ated, while classed and skirted cross­bred wools made from 50c/kg to

60c/kg more than those that hadn’t.

“Be­cause we’re not see­ing the flush of wool we typ­i­cally see at this time of year, there is only a 30–40 cent gap be­tween the 1 per cent and

4 per cent VM wools in the merino seg­ment,” Mr Shel­ley said.

“There should be a pre­mium on the low VM wools, but there just isn’t the vol­ume for buy­ers to be se­lec­tive.”

Mr Shel­ley said an in­crease in com­pe­ti­tion on the last day of sell­ing was en­cour­ag­ing.

“We’re ex­pect­ing the mar­ket to im­prove in the next few weeks, com­ing back to a level where ex­porters are pre­pared to buy again and sup­port the bet­ter qual­ity wools,” he said.

The Aus­tralian Wool In­no­va­tion said the na­tional clip, when ex­pressed in clean kilo­grams, was about

13.5 per cent lower in vol­ume than last sea­son.

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