Wool market rallies on second day of selling

Wool market remains cautious albeit a rally to end the week

Livestock
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Wool market rallies hard on second day of selling to end with some positive tones.

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The Australian wool market showed signs of positivity on the second day of selling, albeit a steady week in the auctions.

The AWEX Eastern Market Indicator closed nine cents lower at 1352 cents per kilogram, clean, after a national offering of 34,537 bales ended up with a 12.8 per cent pass in rate.

When compared to the corresponding sale of the previous season there has been 73,328 more bales offered at auction, an increase of 30.4pc.

Fremantle posted a positive week selling 4661 bales with a 14pc pass-in rate. The Western Market Indicator (WMI) again lifted gaining three cents to 1392c/kg.

According to the AWEX report the weaker tones evident on the final day of the previous series carried into this week with Merino fleece types trading 20 to 40c/kg lower in Tuesday's sale, before prices partially recovered in Wednesday's sale.

The weakness in the southern wool indicator was driven by large declines in the 19.5-micron and 21-micron categories.

The second day the market rallied as buyers were noticeably more spirited in their bidding, especially in wool 19.5 micron and coarser.

The crossbreds recorded the largest losses in percentage terms this week with the crossbred indicators dropping by between 12 and 20c for the series.

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The higher prices being achieved compared to this time last year (the EMI is 44.3pc higher than at the same time last year), combined with the larger amount put through the auction, has pushed the national turnover amount well above last year's level.

At the same time last year, the total turnover amount (in AUD) was $263.42 million.

By the end of this series the turnover amount for the current season is $401.66 million, an increase of over 138 million dollars.

Next week 37,156 bales are currently expected to be offered in Sydney, Melbourne and Fremantle.

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The story Wool market rallies on second day of selling first appeared on Farm Online.

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