New wool selling season opens on a promising note after sliding in June

Phewww! Wool prices lift from the gloom

Wool
PRICE RECOVERY: The eastern market indicator gained a welcome eight cents at the first sales of the new selling season last week, snapping a decline during June.

PRICE RECOVERY: The eastern market indicator gained a welcome eight cents at the first sales of the new selling season last week, snapping a decline during June.

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The new wool selling season has ended a worrying price slide during June's auction sales.

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Wool prices jumped out of their recent doldrums during the first week of the new wool selling with the benchmark eastern market indicator (EMI) gaining eight cents a kg clean to finish at 1723c.

While a far cry from the EMI's lofty 1994c level at the same time last year, last week's moderate gains would have generated collective sighs of relief from growers and brokers.

Alarm bells were ringing in June when the EMI suffered its second largest monthly fall on record to finish the 2018-19 season on a gloomy note.

One key factor behind the positive start to the new selling year was the relatively small national offering of 30,91 bales, down 12,889 bales on the same week last year.

The first sale of a new season is usually a big one but last month's horror show clearly had many sellers worried and the weekly offering was the smallest in AWEX's history (since 1995).

The pass-in rate was 6.3 per cent compared with 15.6pc during the first week of 2018-19.

The EMI lost 5c a kg on the first day of sales last week but roared back into life on Thursday gaining 13c to recover to 1723c.

AWEX said increased offerings of 19-20 micron wools were keenly sought across all types and descriptions, ending the day 20c dearer. The week's turnover hit $81. 86m.

Over in the west the Fremantle fleece market enjoyed a strong start to the new season with the western indicator climbing 35c to 1867c.

The gains were felt across all microns with 18 through to 22 microns generally selling at levels 15 to 30c above those achieved at the previous sale.

This week 34,831 bales are rostered for sale in Sydney, Melbourne and Fremantle, the last sales before the three-week mid-year recess.

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