Merino skirt material wool started strongly on Tuesday, with wool of the same type maintaining equality, and the upward trend continued on Wednesday. On Wednesday, most types maintained stability or slightly increased.
This week's supply volume was 0.6% lower than in Week 24 and 23,933 bales (-2.4%) less than the supply volume of the same period last year.
Despite a 4% appreciation of the dollar exchange rate, sales at auction still increased.
Chinese buyers once again took the lead, followed by buyers from India and Europe.
On Tuesday, the southern market opened strongly, continuing the positive trend of the last auction before the holiday last year. It was reported that sales during the holiday were good. On Tuesday, there was strong demand for Merino wool with fewer quantities available. This momentum continued until Wednesday, with a slight decline appearing on Thursday. The largest price drops on Thursday occurred in the west but were not enough to offset the increases on Wednesday.
As the season progresses, these gaps may narrow due to significant price increases from January to June last year.
The market also rose strongly during the auction in South Africa, with the local market index rising by 7.1%. The exchange rate calculated in US dollars fell by 1.3% since the last auction in Week 23.
For Merino wool, this week was excellent, with the AWEX Merino Micron Price Index increasing. There was another strong increase in fine wool. Since the start of the season, medium-coarse types of wool have consistently achieved the best price performance compared to the same period last year.
After the holiday, the Australian wool market opened with a strong rise. During auctions in Sydney, Melbourne, and Fremantle, the AWEX regional index average rose by 2.1%. The exchange rate of the Australian dollar against the US dollar has risen by 4.1% since the auction in Week 24.
This week, the number of wool bales supplied for auction reached 49,498 (last week's supply was 45,108), with 7.9% failing to sell, including 6.0% unsold in Sydney, 6.4% in Melbourne, and 13.1% in Fremantle. The non-sale rates for Merino fleece and skirt wool were 7.7% and 5.4%, respectively. This week, the number of bales sold reached 45,610.
Wool of 17.0 microns rose by 30 Australian cents (+1.8%), 17.5 microns by 51 cents (+3.3%), 18.0 microns by 35 cents (+2.3%), 18.5 microns by 33 cents (+2.3%), 19.0 microns by 42 cents (+3.0%), 19.5 microns by 33 cents (+2.4%), 20.0 microns by 22 cents (+1.6%), 21.0 microns by 16 cents (+1.2%), 22.0 microns by 29 cents (+2.3%), 23.0 microns by 51 cents (+4.3%), and 24.0 microns by 28 cents (+2.6%).
During the auction in South Africa, the Cape Wool Index rose by 7.1% since the previous auction. The South African Rand appreciated by 1.3% against the US Dollar and by 3.8% against the Euro. The wool supply volume reached 12,330 bales.
This week, the Eastern Market Indicator reached 1,216 Australian cents per kilogram of clean wool, up by 64 cents compared to the same period last year. The current seasonal average reached 1,232 Australian cents per kilogram of clean wool, which is 291 cents higher than the average at the end of Week 28 last year.
The average micron price index for crossbred wool dropped on Tuesday when the auction supply was larger. Over the next two days, prices rose as demand intensified. The average Merino combing wool price index rose by 15 cents.
Next week, auctions will continue in Sydney, Melbourne, and Fremantle, with the currently registered wool quantity reaching 57,783 bales. The estimated wool supply volumes for the next two weeks (Weeks 30 and 31) are 42,800 bales and 38,600 bales, respectively, representing an 11.4% decrease compared to the supply volumes of the same three weeks last year.