Wool opens strongly for new financial year

Wool opens strongly

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The market surprised many in the industry this week, with Australian wool auctions handling the increased volumes presented.

The market surprised many in the industry this week, with Australian wool auctions handling the increased volumes presented.

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Wool market opens strongly for new financial year as highest price for Merino fleece in three years is sold.

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The market surprised many in the industry this week, with Australian wool auctions handling the heavy auction volumes presented as strong competition and global demand eased any initial negativity from buyers.

With more than 51,000 bales on offer nationally for the first sale of the financial year, the market opened relatively strongly recording minimal movements, dropping by just three cents.

The 51,260 bales offered was significantly higher, 66.3 per cent more, than the first sale of the previous season, where only 30,821 bales were offered.

The higher number was partly bolstered by sellers wanting to offer their clip in the new financial year, which resulted in the largest offering this calendar year.

The AWEX eastern market indicator closed at 1420 cents per kilogram, clean.

In the north, the market softened on Tuesday as buyers adopted a cautious approach and by Wednesday some lost ground was recovered with well measured and low vegetable matter (VM) lot's being sought after.

The Merino locks were in favour as the low VM trend continued.

Crossbreds lost 20 to 40c for the week.

After two days of selling the western market indicator outperformed the EMI by adding 2c to go to 1442c/kg clean.

Some individual WA micron price guides finished in front of both the eastern selling centres.

The movements in the individual Micron Price Guides (MPGs) across the country ranged between +9 and -45 cents.

The final day, with only Melbourne in operation, the market strengthened overall, with the EMI adding a further seven cents.

When compared to the opening sale of the previous season the EMI has added 304c, an increase of 27.2pc.

On Tuesday a line of 12.8-micron Merino fleece wool, sold for 8100c/kg, greasy.

According to the AWEX weekly market report this was the highest price seen at auction in over three years.

Next week is the final sale before the annual three-week mid-year recess.

Quantities remain high with 51,327 bales currently expected to be offered nationally.

The story Wool opens strongly for new financial year first appeared on Farm Online.

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