Wool price nears record territory again

That is the question wool buyers and sellers are asking after a strong fortnight of sales at the Western Wool Centre (WWC).

The Western Indicator (WI), calculated from prices across the micron range, ended last week just six cents shy of its August 17 all-time record of 1680c a kilogram clean.

In the individual micron price guides, 19.5 micron fleece wool matched it’s deregulated price record of 1833c/kg clean on Wednesday last week but slipped 7c on the Thursday and along with 20 micron, which slipped 10c, were the only Merino wools to ease in price.

Some in the industry are expecting the market strength to continue this week and for the WI and some individual micron guides to not only match, but smash, existing records.

“There is an expectation by some the very strong market will continue this week and it could be up 20c to 30c across the range,” said Peter Scanlan Wools buyer Steve Noa on Tuesday.

“There’s a lot of people watching with interest to see what will happen.

“I’ve had a visiting group of Chinese wool users with me over the weekend, they buy short wools and are blanching at the prices they have to pay, but they recognise that it’s a supply and demand situation,” Mr Noa said.

“The quality of the wool is very good, it’s just there is not an unlimited supply.

“We’ve (Peter Scanlan Wools) had a very busy October with shearing back on schedule after rain delays at the start, so you would expect that supply is about at its peak,” Mr Noa said.

Westcoast Wools auctioneer Danny Ryan agreed supply constraints were driving prices and a prospect of the three-week annual wool auction selling system shutdown over Christmas and New Year was already forcing buyers, not just from China but Europe and India as well, to remain in the market.

“I’m aware of some business being done with a December shipping date,” Mr Ryan said.

“Overall I think it’s going to remain a very healthy situation, none of the processors have got stockpiles, we’ve got a stable dollar, I expect the offering to remain 40,000-45,000 (bales) nationally and no one’s got wool they are suddenly going to drag out of the cupboard and dump on the market.”

Elders wool manager Danny Burkett said the individual micron prices were “worth noting”.

“We’ve got 18 micron selling for just under $22 (a kilogram), 19 micron for just over $19, 20 micron for just on $17 and 21 micron for just under $16,” Mr Burkett said.

“It’s a sensational market and any woolgrower who has sold wool in the last quarter - I would estimate that’s 45-50 per cent of WA growers - have been able to participate.”

Geoff Shepherdson, Anglesey Poll Merino stud, Gnowangerup, was one of those who participated at the WWC last week.

“It’s really satisfying to see wool getting some good prices and bringing an appropriate reward for all those who kept the faith,” Mr Shepherdson said.

He was surprised by the amount of finer wools on offer and the strength of that market.

Mr Shepherdson said his top price for a line of lambs’ wool was a credit to the shed staff.