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Australia wool market extends strong start to year

SYDNEY: The Australian wool market further strengthened its five percent rise last week with a further two percent increase on average at the Sydney, Melbourne and Fremantle sales.

The AWEX Eastern Market Indicator rose by 13 cents to 634 cents a kilogram clean. This was based on a 9 cents increase in the Northern markets and a rise of 17 cents in Southern markets.

Regional Indicators closed the week at 657 cents a kilogram clean in the North and 614 cents a kilogram clean in the South.

The Western Region Indicator closed at 521 cents a kilogram clean, based on a seven cents rise, said Bob Quirk of the Australian Wool Industries Secretariat (AWIS).

"All the regional indicators rose reflecting generally higher prices," Woolbroker Wesfarmers Dalgety said.

Ten percent of the 79,528 bales offered for sale passed in.

Quirk said the strength of the market was due to continued Chinese interest and strong demand for all types of fine wool. "Price increases were maintained in the presence of a strong Australian dollar." he said.

As at last week, demand for fine wool was solid in Melbourne, where the indicators for 18 and 19 micron fleece wool lifted by 64 cents and 42 cents respectively on top of gains of 30 cents and 26 cents, Quirk said.

Wesfarmers Dalgety noted that the 19 Micron Price Guide reached 1133 cents on Thursday, "its highest level since Spring 1997 when it reached 1129 cents".

Because of Australia Day, sales continue next week in Sydney and Melbourne on Tuesday and Thursday only. Some 63,000 bales have been rostered for sale. Fremantle sales will resume the week commencing January 31.-Reuters