With average rises of 1.2% in the weekgood demand for fine wool and sellers’ reluctance in the face of low prices, wool markets in Australia reopened after three weeks of recess.
The Eastern Markets Indicator (IME) closed at US$ 9.49 per clean base kilo a week with variations and values in dollars sustained by the evolution of the exchange rate.
Since Tuesday, with only 73% of the offer sold, the distance between the buying and selling points was evident, which withheld the offer by not validating the prices. In the following days, bale retention remained at averagely high levels – between 16% and 20%.
The demand was focused on good quality woolwith low vegetable matter content and good results from objective measurements, according to the report of the Uruguayan Wool Secretariat (SUL) based on the Australian Wool Exchange (Awex).
Almost all categories closed the week with upward arrows. The market seeks to rebound from a very low value floor –since January 2021–. Between June and July, prices lost 10.3%, more than one dollar in a few weeks.
Prices compared to the 2021/22 harvest are between 3.5% and 5% lower for ultra-fine wool (less than 17.5 microns), 12% for fine wool and almost 30% for 28-micron wool.
In the local market, the latest references have been in the axis of US$6.10 to US$6.70 per dirty base kilo for Merino wool between 20.5 and 21.5 microns green grifa. The references for Corriedale wools are on the axis of US$1.20 to US$1.50 with certifications.
The pre-calving shearing was delayed in the last week due to the rains in the north of the country, and the first observations indicate that the quality of the wool from the 2022 harvest points to be somewhat better than that of last year, favored by the dry summer.
