National wool market strengthens buoyed by Merino fleece sector

Rising to 1308c/kg at the close of sales, the WMI was mirrored by the Eastern Market Indicator (EMI).

However, the 10 cent rise in the EMI, to close the week at 1172c/kg, was its largest daily rise this calendar year, its largest since December 13.

It was the Merino fleece sector that drove the stronger prices and led to the solid overall result for the Australian national market.

The Fremantle sale was strong on both days, but the 11c/kg rise at the close on the first day provided leverage for the Eastern market at the opening of the final day.

Again the pass in rate in WA was a stand out at just four per cent and this was also reflected in the East.

Elders district wool manager Darkan/Williams, Sarah Buscumb, reiterated the solid performance of the Merino fleece sector.

"The market strengthened as the week progressed," Ms Buscumb said.

"The bulk of the wool selection was in the 18 - 20.5 micron range, which saw strong demand and helped progress the prices.

"The broader end was also generally a bit dearer.

"There was stronger demand for Merino fleece and less than four per cent was passed in."

Ms Buscumb said that buyers were still very selective on the VM and poorer types, with better quality sought after and increasing demand.

The Fremantle sale Tuesday roster saw 4,497 offered, 4,225 sold, 361 withdrawn and 5.7pc passed in, while Wednesday's offering of 4,725, saw 4,516 sold, 99 withdrawn and 4pc passed in overall.

Nationally 37,289 bales were offered and 35,644 sold, with a total of 9,222 offered in WA and 8,818 sold.

The Fremantle fleece market continued to strengthen, with strong demand on the 18-20.5 micron range helping to push prices10 and 25c/kg higher.

A very limited offering of wool 21.0 micron and broader and a limited selection of skirtings also saw these lift 5-10c/kg.

AWEX's Andrew Rickwood said the market closed the day strongly in the West, setting the East up for a robust second day opening which was dearer as expected, then slowly but noticeably climbed as the sale progressed.

"All merino fleece Micron Price Guides (MPGs) recorded increases, between 7 and 26 cents," MrRickwood said.

"This small average movement, highlights the stagnant nature of the market over recent months, making this week's mini spike welcome news to sellers.

"Next week's quantity is forecast to rise, due in part to sellers being encouraged to the market."

There are currently 42,390 bales rostered nationally with 9,937 being the WA allocation.

As all centres no longer move if one centre has a local Public Holiday, next week is an unusual selling pattern.

Sydney and Fremantle will sell on Tuesday/Wednesday while Melbourne will sell on Wednesday/Thursday, to accommodate the Melbourne Monday Public Holiday.