Woohoo! Wool market rises after horror month

Flicker of hope for wool as EMI rises 11c in Sydney and Melbourne

Wool
NEW HOPE: Wool prices ended their sickening slide on Tuesday with the Eastern Market Indicator rising 11 cents top 1181c a kilogram clean.

NEW HOPE: Wool prices ended their sickening slide on Tuesday with the Eastern Market Indicator rising 11 cents top 1181c a kilogram clean.

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Tuesday's wool sales in Melbourne and Sydney showed signs of a price recovery with the EMI rising 11 cents a kilogram clean.

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The bloodshed stopped in the wool market on Tuesday when the Eastern Market Indicator jumped 11 cents to 1181c a kilogram clean.

Prices improved at both the Melbourne and Sydney sales where the pass-in rate dropped to 6.4 per cent on an offering of 12,377 bales, ending a horror month for the market.

A much-needed injection of $15.2 million flowed into growers' pockets.

Demand for wool has nosedived on the back of coronavirus lockdowns which has shredded the global economy.

Some pundits were suggesting this week that prices had slumped to levels which were creating interest from mills, particularly in China.

The Southern Indicator added 8c to 1150c at the Melbourne sale where the Merino fleece market improved by 20 to 30c for all good style lines.

Even lower style and poorly measured wools sold in sellers' favour, rising by 15-20c.

Selective lots with low CVH (variation in hauteur length) fetched premiums up to 45c.

Good style Merino skirtings with low vegetable matter, 18 micron and finer lifted by up to 30c.

The pass-in rate rate was a relatively low (compared with recent sales) 7.9pc on an offering 6299 bales.

All Merino micron fleece categories rebounded in Sydney into positive territory where buyers got stuck into the catalogue of 6078 bales which resulted in a pleasing pass-in rate of 4.8pc.

An offering of 19.5 micron and finer wools lifted by 20-30c and up to 40c for the best lines.

A limited selection of broader wools were generally 20-30c dearer across all descriptions while Merino skirtings ended the day up by 20-40c and as much as 50c in places.

Last week the EMI tumbled by 55c to 1170c, the lowest level in five years.

Chris Wilcox, executive director of the National Council of Wool Selling Brokers of Australia, said coronavirus had triggered a collapse in consumer confidence in April which had flowed through to the wool market.

"Consumer confidence has fallen off a cliff in the US, Europe, Japan and South Korea," he said.

"These plunges, combined with the social lockdowns, will no doubt be causing a collapse in retail sales.

"Unbelievably, the statistic on consumer confidence in China shows only a small decline in February before an improvement in March."

In its May Insights Update the Adelaided-based Rural Bank said some COVID-19 impacts were starting to ease with wool auctions re-opening in NZ and and South Africa and processing facilities re-opening in China.

However the bank said the wool market would continue to feel the sting of the cornavirus chaos for some time to come.

Wool sales will continue in Melbourne and Fremantle on Wednesday.

The story Woohoo! Wool market rises after horror month first appeared on Farm Online.

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