EMI breaks back through 1600c a kg barrier

Strong demand pushes wool's EMI back through 1600c a kg

Wool
PRICE RECOVERY: The wool market has continued to recover from a worrying slide at the start of the new selling season but the outlook for prices in the next few months remains clouded.

PRICE RECOVERY: The wool market has continued to recover from a worrying slide at the start of the new selling season but the outlook for prices in the next few months remains clouded.

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The wool market continued to recover at today's sales after news at the weekend that China is running running short of greasy wool.

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Reports that China is running short on greasy wool seem to have been on the money with the benchmark Eastern Market Indicator jumping 61 cents a kg clean at sales in Melbourne and Sydney today.

The EMI finished the day on 1603c off the back of a relatively small national offering of 12,949 bales. The pass-in rate was 4.7pc.

Australian delegates at the weekend's Nanjing Wool Market Conference in China said Chinese mills had indicated their greasy wool stocks were low.

'The Sydney auction ended with big price increases across all microns as well as a clearance rate of 96pc from an offering of 3632 bales, AWEX said.

An offering of 19-21 micron wools attracted strong buyer demand for all types and descriptions, pushing the micron price guides 90-100c higher.

Merino skirtings recorded increases of 50-80c across all types and descriptions while crossbred wools ended the day 30-50c dearer.

The Sydney price indicator is now sitting at 1630c, up 60c for the day, AWEX said.

The Melbourne sale opened strongly and maintained its solid increases through to the close of selling.

Wools 18 to 19 micron rose a solid 40-50c. The biggest movers of the day was in the 19.5 to 21.5 micron range up by 90c.

The pass-in rate in Melbourne was 4.1pc on an offering of 6479 bales. The Melbourne price indicator rose 61c to 1585c.

Over in the west the Fremantle fleece market continued to track sharply upward with large price increases across all Merino microns.

Wools from 18 all the way through to 21 micron generally sold at levels 90-100c above the previous sale.

Despite the hefty rise and small catalogue of 2838 bales almost 8pc of the fleece failed to sell.

A total 15,922 bales are rostered for sale tomorrow in Sydney, Melbourne and Fremantle.

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