Wool prices increase by 36c/kg at opening sales

Rates across categories have increased at opening sales for the 2022-23 financial year. See how micron classes performed.

Opening wool prices for the new financial year have delivered hope, with the Eastern Market Indicator increasing by 36c/kg.

All price categories experienced increases, with the 19-micron category showing a lift of 77c/kg to 1479c/kg at Melbourne auctions.

However, wool growers say the slight glimmer of hope is not enough to offset production costs.

Paul Cocking of Mangoplah in southern NSW said any increase would make growers “feel good” for a short period.

However, it wasn’t enough to offset the dwindling saleyard prices for the meat side of sheep and wool operations.

NSW Meat and Livestock Australia’s Eastern States Trade Lamb Indicator is currently at 554c/kg. It is marginally better in Victoria at 569c/kg.

“Wool growers are being hit from both sides. The meat value, which often acts as a buffer, continues to dive,” Mr Cocking said.

Wool growers say opening wool prices have delivered hope, but it is not enough to offset production costs. Picture: Andy Rogers

And escalating inputs have also made margins even tighter. There were also ever-increasing concerns about sourcing labour.

“We seem to be paying out on all sides, everything from agent’s commission to saleyard fees and industry levies,” he said.

Mr Cocking said that despite the challenges, it was good to see the prices improve during the opening sale for the financial year and there were some signals further increases may take hold.

“We are still very exposed to China and world economic conditions,” he said.

“I believe it will be a few months before we see any substantial increases,” he said.

At the Melbourne sales, 17-micron wool recorded a 53c increase to return 1895c/kg. The price for the same category was 1858c/kg at the Sydney auctions.

The 21-micron category increased by 62c to 1309c/kg at Melbourne sales.

The Australian Wool Exchange attributed the price increases to market supply.

After experiencing lacklustre results, some sellers opted to hold back bales.

There are 44,000 bales to sell next week before the three-week auction recess.