Aus­tralian wool mar­ket bounces back

Countryman - - WOOL - Bob Gar­nant

The Aus­tralian wool mar­ket re­gained the 27c/kg it lost in the pre­vi­ous sale, and set the bench­mark in­di­ca­tor at 1778c/kg clean dur­ing last week’s sale.

AWEX mar­ket an­a­lyst Lionel Plun­kett said the wel­come cor­rec­tion came af­ter the Eastern Mar­ket In­di­ca­tor fell for six con­sec­u­tive trad­ing days.

“The EMI rise seemed to be in­flu­enced by cur­rency fluc­tu­a­tions,” he said.

“The Aus­tralian dol­lar fell 1.8 cents to US77 cents, which ini­tially boosted the mar­ket be­fore it was ham­pered by a half-cent in­crease on the fi­nal day.

“In US terms, the EMI barely moved, dip­ping 3 cents for the se­ries. Over­all, the Merino sec­tor fin­ished be­tween 20c and 50c dearer.”

El­ders said de­mand was not ex­actly buoy­ant, but ma­chines still needed to be topped up.

“The af­ter-Easter sale is push­ing 50,000 bales, which will chal­lenge the cash-strapped wool buy­ers who will be look­ing for more se­lec­tive pur­chas­ing,” an El­ders spokesman said.

“Prices for wool tops and yarn are start­ing to be of­fered on a twotier ba­sis and a drop of 10c to 20c/ kg per month is about the worstcase sce­nario.

“There is a grow­ing sense that con­sumers, par­tic­u­larly those who shop on­line, want to buy less of­ten, but buy right. They are ask­ing more ques­tions of the re­tailer around sus­tain­abil­ity and trace­abil­ity of the prod­uct.

“Merino ticks most of the boxes for them and so the out­look for de­mand at the high end of pro­duc­tion looks very good.

“At the other end of the scale, where man­u­fac­tur­ers are pro­duc­ing a cheaper ar­ti­cle for the masses, there is an on­go­ing strug­gle with cur­rent wool prices.

“The more tech­ni­cally savvy pro­ces­sors have been able to adapt the bal­ance of fi­bre to off­set some of the Merino price rise, but oth­ers may not be able to af­ford the same in­put spec­i­fi­ca­tions as last sea­son.”

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