Wool price keeps ris­ing

Countryman - - NEWS - Cally Dupe

Australian wool prices hit an his­toric high at the sec­ond last sale of the sell­ing sea­son, with the bench­mark East­ern Mar­ket In­di­ca­tor ris­ing 52¢ to 2073¢/kg clean at two sales.

There was no sale at Fre­man­tle last week, but at Sydney and Mel­bourne, buy­ers scram­bled to se­cure lim­ited quan­ti­ties of 18-22 mi­cron Merino wool from the 20,904 bales on of­fer.

AWEX mar­ket an­a­lyst Lionel Plun­kett said the sale was the small­est of the sea­son and for the past nine years. “The mar­ket has con­tin­ued to im­prove dur­ing the se­ries, mir­ror­ing re­cent trends where most sup­port has been for the Merino fleece sec­tor,” he said. “The 18 to 22 mi­crons all at­tracted spir­ited com­pe­ti­tion ... driv­ing prices as much as 80¢ higher.”

The fi­nal sale for the sec­ond will be held across all three sell­ing centres next week, with 32,528 bales on of­fer.

WA’s an­nual wool clip is now worth $1.07 bil­lion, up from $826 mil­lion in 2016-17.

Cur­rency move­ments and a small na­tional of­fer­ing com­bined to push the East­ern Mar­ket In­di­ca­tor to new heights, ris­ing 52¢ to close the week at 2073¢/kg.

The penul­ti­mate sale for the 2017-18 sea­son has tra­di­tion­ally been small, and last week no ex­cep­tion. With Fre­man­tle’s cen­tre in re­cess and to­tal bales regis­tered for sale to­talling just un­der 21,000, it was re­ported to be the small­est na­tional of­fer­ing in nine years.

A to­tal of 20,685 bales were cleared to the trade in Sydney and Mel­bourne, reg­is­ter­ing a 2 per cent pass-in rate and rais­ing $46.6 mil­lion. This equated to an av­er­age of $2275 a bale, $519 more than the same time last year.

Australian Wool In­dus­tries Sec­re­tariat Inc rep­re­sen­ta­tive Peter Mor­gan said record prices were recorded across all re­gional in­di­ca­tors and av­er­age AWEX mi­cron price guides.

“Prices in Australian cur­rency were as­sisted by the fall in the US Ex­change Rate, but still re­mained fully firm in US cur­rency,” he said.

“The US Ex­change Rate fin­ished 1.95¢ lower to close at 73.60¢ on Thurs­day.

“There were good price rises across all wool types and across all mi­cron ranges, apart from the coarse cross­bred mi­crons.”

AWEX re­ported prices for 18 to 22 mi­cron wool rose by as much as 80¢, with “spir­ited com­pe­ti­tion” from buy­ers from China, In­dia, Europe and Korea.

Ul­trafine bales also gained in price, al­though the av­er­age was down­graded by the mixed qual­ity of the wool avail­able.

Sup­port for finer cross­bred mi­crons pushed the 26 and 28 mi­cron price guides into record lev­els, gain­ing 30¢, while those for 20 to 28 mi­cron wool also reached new heights.

The Na­tional Coun­cil of Wool Sell­ing Bro­kers of Aus­tralia Inc ex­ec­u­tive di­rec­tor Chris Wil­cox drew at­ten­tion the lat­est re­port by the Fed­eral Gov­ern­ment’s agri­cul­tural com­mod­ity fore­caster.

“ABARES pre­dicts the EMI will av­er­age 1990¢/kg in 2018/19, up 15.5 per cent from an av­er­age of 1723¢/ kg in 2017-18,” he said.

“In March, ABARES pre­dicted the EMI would av­er­age 1700¢/kg in 2018-19. So, the fore­cast an­nual av­er­age has been lifted by 290¢/kg. This is an amaz­ing lift in a mere three months and a phe­nom­e­nal av­er­age for a full sea­son.”

With Fre­man­tle back in the pic­ture this week, the fi­nal sale of the sea­son was ex­pected to bring in 32,528 bales across the na­tion.

Pic­ture: Cally Dupe

Cor­ri­gin broth­ers Richard and Tony Guin­ness at their shear­ing shed.

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