The fine wool indicators went up in Sydney while they went down in Melbourne. This highlights the importance of the quality of the selection on the indicators. The offering of 18.5 micron and finer in Sydney was more suited to Italian weaver interests so attracted a different level of support. In this case, just to read the index values is misleading, you need to understand the offering as well. It was a very good market for 18.0 micron and finer. Buyers tended to focus more on the finer wool as they look better value in comparison. Unsure of what to buy, some traders, particularly the Chinese, seemed to favour what looked best value and the 19.5 / 21.0 usual types were too expensive following last week’s rally. There was little premium for the better types and they still seem best value to us. Overall it was a good result for the market while the Australian dollar improved against the USD on Thursday. The Fremantle sale seemed to over react on Wednesday so if firmed up a little more than the eastern markets later in the week.
Each indicator is expressed by a number representing a market quotation for a selected range of types and is not a price expression and it’s not influenced by currency fluctuations.
Wool indicators are anyway based on Australian Dollar.
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As the Chinese interest gained momentum, the most inferior types were more keenly sought after. There is little discount for tender and the more inferior types, including those with VM up to 2.5%, so the best lots look better value to us. We keep saying it but the interest in non mulesed wool continues to gain momentum and for sure demand is outrunning supply at the moment as competition emerges from a wider range of buyers.
Auction offering – current week
Selling Centres for week 22
Market Sale Offered Sold Passed In
North S 22 8779 8375 4.6%
South M 22 17691 16332 7.7%
West F 22 8043 7176 10.8%
Auction offering – next week
Market Sale Sale days Volume
North S 23 W-T 9728
South M 23 W-T 20672
West F 23 W-T 9110
If you want to see the complete Wool Sales Roster click here.