THERE was a reduced offering, but it was still the third largest of the season with 52,500 bales, which saw the market lose a further 1% last week, before recovering according to the latest Elders wool report.
The AWEX EMI fell six cents over the days of sales, a similar result to last week, as was the pass in rate at 8.3%.
Continued filling of orders booked in 2012 put a floor in prices with renewed interest late in the week from exporters with fresh business contributing to a firming market. The positive tone continued in the west where indicators pushed into the black for the day.
This, along with substantially lower offerings in the next fortnight, bodes well for the coming weeks sales.
Chinese operators on the whole remain cautious, with some accumulating wools consistently at current levels whilst reports persist of other less enthusiastic processors using the Chinese New Year as an excuse to shutdown for an extended period.
Europe is in the midst of its Spring/Summer fashion fairs showcasing recently released collections of among other products plenty of lightweight woollen wear.
Reception of these has been gauged as average, a reasonable outcome considering the EU's woes of the past year.
Concerns over wool supply in the short and long term are evident with recently released data from the MLA on sheep and lamb slaughterings showing year on year growth.
- Fine Wools: Premiums for better spec fine wools have risen.
- Medium: Ongoing sold position covering by exporters and lower stocks right from producer through to retail will support. Any spot market rally should be seen as an opportunity to forward price wools available to the market post Easter.
- Crossbred: Bookings equivalent to current greasy market, firm prices plus.
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