Buyer confidence returns to wool market

The Eastern Market Indicator (EMI) closed week 21 at 1858 cents a kilogram, a 77c/kg rise on the week prior.

On the first day of selling, spirited bidding saw the EMI rise by 46c/kg, the largest daily increase in the last three months.

And this upwards trend continued on day two of selling, sending the EMI up another 31c/kg.

The Southern Market Indicator closed at 1832c/kg, and while this was the lowest of the three selling centres, it was still an increase of 74c/kg on the week prior.

The Northern Market Indicator closed at 1898c/kg, a 79c/kg increase, and the Western Market Indicator closed at 2016c/kg, an 81c/kg jump.

There were price rises across all micron ranges and wool types, with the greatest gains being among the fine to medium crossbreds, and from 19.5 upwards in the Merinos.

This was on a total offering of 31,889 bales, which was slightly down on the week prior by almost 3500 bales.

This total is still significantly down year-on-year, down by 136,783 bales, or 17.3 per cent.

Buyers from China were dominant, making it appear they were returning to the market after multiple weeks of being absent.

There was also buying support from mills in Europe and India.

It appeared seller confidence increased with the rising market.

The passed-in rate was down to 5.9pc, a 5pc decline on the week prior, and a 15pc decline on the peak rate of 20.9pc, recorded earlier this month.

Black Friday was not only an important day on the US calendar, but also a good indicator for retail sales in the Christmas and holiday retail season.

That’s according to National Council of Wool Selling Brokers of Australia executive director Chris Wilcox.

Mr Wilcox said it was also a very important retail period for the sale of wool clothing in the US.

And he said indications were positive.

“It sets the scene for a strong Christmas/New Year retail period, which will benefit the sale of wool clothing,” he said.