02 JUN 2023

National wool update - 2 June

Although the Australian wool market has recorded an overall loss for the third week in a row, not only was the fall minimal, but there were also positive signs late in the series. 

There were initially 47,041 bales rostered for sale, after 11.7 per cent (pc) was withdrawn prior to sale. The national offering was reduced to 40,106 bales. Of this offering, 11.7pc failed to reach seller reserve, leaving just 35,417 bales making its way into exporters hands. 

In the Eastern centres the prices on offer did not vary greatly from those of the previous series. 
The movements in the Individual Micron Price Guides (MPGs) in Sydney and Melbourne for merino fleece all ranged within 20 cents of the previous week. 

With the crossbred, carding and skirtings sectors also recording minimal change for the week, the movement in the AWEX Eastern Market Indicator (EMI) was also marginal. The EMI fell by 4 cents for the series, closing at 1,210 cents. 

As mentioned earlier, the week finished in a strong fashion. The Western region, which was selling last, had a late upward surge. The Fremantle fleece MPGs added between 19 and 34 cents for the final day and between 26 and 44 cents for the week. 

Noteworthy this week, the 1PP committee approved a line of wool from Kingston/Tasmania. 
To be recognised as 1PP, there is strict criteria to be met and the wool “must exhibit superlative quality, style and soundness and be prepared in the best possible manner".  This was the first 1PP lot in the Southern region since August.

As this is traditionally a quiet shearing time in the West, as many farmers are well into their cropping programs, quantity dictates that no sale is needed in Fremantle next week. 

With only Sydney and Melbourne in operation the national quantity drops. Currently, there is expected to be 36,300 bales on offer.