Wool market holds firm despite early price dip
Polar-opposite selling days for the wool market have seen prices hold relatively firm, with initial losses recouped.
A MID-week market flip saw prices remain relatively firm with little net movement despite a price dip early in the week.
The Eastern Market Indicator lost 6 cents overall last week after recovering some ground from the 11 cent drop on Tuesday to finish at 1144c/kg.
“The market opened on an easier note on Tuesday, generally 20 to 30 cents cheaper,” Elders national wool selling centre manager Simon Hogan said. “But on the Wednesday we saw the reverse and the market was 20 to 30 cents dearer across almost all categories.”
The 19-mircon fell 24c on Tuesday and rose 19c Wednesday to finish at 1373c/kg while the 21-micron fell 21c and regained 23 cents to finish at 1169c/kg.
The EMI seems to be regaining some medium-term stability sitting only six cents above this time last month, but still remains well behind levels from this time last year when it sat 348 cents higher at 1492c/kg.
Last week 35,986 bales were offered nationally and 32,323 sold for a pass-in rate of 10.2 per cent, similar to the week prior. Two sales remain before the Christmas recess with 41,827 bales currently rostered for sale this week.
Mr Hogan said renewed interest from China on the Wednesday helping to lift prices.
“There’s only four selling days between now and the Christmas recess so I think mills are reassessing and stocking up to make sure they have enough supply to keep working through the recess,” Mr Hogan said.
The National Auction Selling Committee today announced that easing COVID restrictions will see the Melbourne selling centre resume a three-day selling week as of January.
Eamon Timms said in effect this will mean the number of bales offered nationally could gain another ten to 12,000 bales a week.
He said while such volumes would have been challenging even last month, buyer sentiment is improving.
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