Market demand from India and Europe boosts medium-micron wool

Medium-micron wool prices have risen as global market boosts Australian sales. See what happened at the auctions this week.

Growers and brokers have welcomed a boost in the price of medium-micron wool.

The Eastern Market Indicator increased by 6c/kg after the wool sales this week, with most of the strength in Victoria coming from wool above 19 microns.

The lower micron categories eased 4c/kg with 17-micron wool at 1713c/kg and 18 microns, 1576c/kg.

However, any ground that was lost in the lower micron area was made up for with 23-micron wool rallying by 105c/kg to settle at 1382c/kg.

Quality Wool area wool manager for NSW and Victoria, Jenni Turner, said it was a really positive selling week.

“The medium-micron categories did seem to get some attention,” she said.

Ms Turner said it was positive to see buying strength from the European buyers.

“There were certainly some bright spots in the market,” she said.

Buyers place their bids at the Melbourne wool sales. Picture: Zoe Phillips

The market signals from Fremantle in Western Australia were also strong, with 18-micron wool showing a 9c/kg rise to settle at 1534c/kg and 21-micron wool in the west rallied 28 cents to make 1420c/kg.

“It is always positive for the market when we see increases and stronger market reactions in the west,” she said.

Ms Turner said that with growers now getting towards the end of the summer season, there was a heavier dust and vegetable matter content in some of the lots on offer. However, overall, the quality was still high.

Fox and Lillie brokerage manager Eamon Timms said interest from India was helping to lift the medium micron wool.

“It is good to see the market coming up and starting to claw up to better levels,” he said.

Market commentary from Australian Wool Innovation highlighted overall buying support despite some of the Chinese purchasers being absent from salerooms.

The market positivity was attributed to price levels being upward of 10c/kg clean across the board for Merino and crossbred fleeces.

The strength from Fremantle was also considered a further positive sign, with that selling centre posting gains of 20c/kg clean across the entire offering.

An offering of 38,000 bales will sell next week.