Wool prices up as testing figures show volumes are back

The wool market posted its second successive week of rises in a welcome turnaround for growers as importers begin to become worried about supply.

The wool market posted its second successive week of rises in a welcome turnaround for growers as importers begin to become worried about supply.

The benchmark Eastern Market Indicator closed last week at 1152 cents a kilogram clean, gaining 22c/kg in the past fortnight including 15c/kg last week.

It followed

The biggest gain in Melbourne sales was a rise of 27c/kg for 26 micron wool, but 21-micron gained 26c/kg 17-micron gained 25ckg and 18 micron was up 20c/kg.

In its analysis of the auctions, Australian Wool Innovation said last week’s market was positive as buyers began to become concerned about volumes.”

“Supply is starting to become more of a factor to overseas mills looking for direction,” an AWI spokesman said.

“South Africa is close to their two month (auction) break, while the low volumes at Australian upcoming auctions are an issue.”

“Perhaps the most significant supply concern though is the trend of wool production lowering.”

Nutrien auctioneer Shannon Porter takes the bids at the Brooklyn wool auctions. Picture: Zoe Phillips

This week, close to 34,000 bales are rostered to be sold at Melbourne, Sydney and Fremantle.

The latest volumes coming into the Australian Wool Testing Authority show a big fall year-on-year.

May monthly comparisons show a 17.2 per cent fall in the total lots being tested, a 15.6 per cent fall in the number of bales and a 15.5 per cent falling the weight of wool tested this year compared to last.

Numbers are also down for the selling season to date (July last year to the end of May, with the volume back 2.6 per cent.

The AWTA has tested 314.8 million kilograms in the selling season, back from 323.2 million kilograms for the same period a year earlier.