Finer clips weaken but increase on horizon
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
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.