EMI lifts another 6c as wool's strong start to new year continues

Wool's positive start to 2020 continues as EMI rises by another 6c

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ON THE RISE: The wool market continued to rise yesterday as trade tensions between China and the United States were further eased.

ON THE RISE: The wool market continued to rise yesterday as trade tensions between China and the United States were further eased.

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The Eastern Market Indicator nudged up another six cents yesterday as the wool market's positive start to 2020 continued.

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The benchmark Eastern Market Indicator climbed another six cents to finish on 1643c a kilogram clean after yesterday's sales in Sydney and Melbourne.

The EMI rose 79c during the first sales after the Christmas recess on Tuesday with a resurgence in buyer confidence on the back on a significant easing of trade tensions between China and the United States.

Pundits will be watching today's sales after the US and China overnight signed a new agreement aimed at easing a trade war that has rattled markets and damaged the world economy.

Across in the west the Fremantle market also rose by 35-40c a kg during the first sale for 2020.

The pass-in rate on the national catologue of 20,489 bales was 9.3 per cent, AWEX reported.

The Northern Indicator dropped by 2pc in Sydney to land on 1678c with a pass-in rate of 4.9pc on an offering of 4928 bales.

Demand was still solid after the previous day's spectacular gains.

Fleece wools 17.5 micron and finer ended the day tending in sellers' favour with selected best-style, well-measured wools 10-20c dearer.

The 18 micron range was generally unchanged across all types and descriptions while a selection of 18.5 micron and broader wools were generally 10c lower. Merino skirtings dipped by as much as 10c a kg.

Down in Melbourne the market consolidated on Tuesday's gains with the Southern Indicator rising by 10c to 1620c.

Wools 19 micron and finer increased by 5 to 10c while 19.5 micron and broader eased 5c.

Merino skirtings rose by a healthy 30-40c. Crossbred wools closed unchanged for 29 microns and broader and 5-10c dearer for finer wool.

A total 8885 bales were offered in Melbourne with a pass-in rate of 3.4pc.

The pass-in rate was much higher across the Nullabor at 20.5pc as WA vendors again showed they were in no mood to sell below reserves.

When the Fremantle market opened 17.5 microns through to 21 microns were selling at levels 90 to 100c above the final sale of 2019.

AWEX said as the sale progressed the market softened and by the end of the day the increases were on average only 35 to 40c.

Strong bidding pushed prices for Merino skirtings up by 105 to 130c.

A catalogue of 18,791 bales will be offered at today's sales in Melbourne and Fremantle.

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