China con­tract in­quiries up

Countryman - - WOOL - Bob Gar­nant

The Aus­tralian wool mar­ket’s bench­mark in­di­ca­tor rose 77 cents/kilo­gram clos­ing last week at 1858¢/kg clean.

AWEX said the value of wool sold to date was $58.2 mil­lion or $2007/ bale tak­ing the to­tal to $1.332 bil­lion.

The Western Mar­ket In­di­ca­tor was 81¢/kg stronger as the $A fell 0.29¢ against the $US to close at 72.50¢ on Thurs­day.

Aus­tralian Wool In­no­va­tion trade con­sul­tant Scott Car­mody said there was an in­crease in Chi­nese in­quiries for new con­tracts.

“What per­cent­age of this in­ter­est and how it con­verts to ac­tual new busi­ness re­mains to be seen in or­der for a con­tin­u­a­tion in mar­ket pric­ing,” he said.

The El­ders In­ter­na­tional Wool Re­port stated medium Merino fleece per­formed best dur­ing the week with in­creases of 100¢/kg, while su­perfine cat­e­gories added only half that amount.

“Skirt­ings, par­tic­u­larly the bet­ter, lower veg­etable mat­ter con­tent lots were strong, and cross­bred wools gained 50 to 80c/kg as some large or­ders came out of China,” the re­port said. “Pro­cess­ing mills are look­ing to cover the auc­tion re­cess pe­riod in the next three weeks and those buy­ing cross­bred types do so at a lower cash-on­hand risk.”

The re­port said the card­ing sec­tor re­cov­ered, af­ter fall­ing more than 500¢/kg in the past three months, but have re­gained 150¢/kg in the past two weeks.

“The card­ing sec­tor, which was sell­ing at 85 per cent of fleece value, is now back to a more re­al­is­tic 55 per cent level,” the re­port said.

“Over­all, the wool mar­ket has sur­vived the tra­di­tional off-sea­son where de­mand was ab­sent and buy­ers had price re­sis­tance.”

The re­port said some brands had de­cided how to bridge the gap and had be­gun to place or­ders for the 2019-20 sea­son, al­though many Chi­nese pro­ces­sors were strug­gling at present.

“Do­mes­tic or­ders within China are said to be quite slow,” the re­port said.

Wool of­fer­ings for the com­ing three sales are ex­pected to range from 36,374 bales to 40,883 bales and to be 23.5 per cent less than the same pe­riod last year.

Tim Burgess with greasy wool.

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