Kingston produces 1PP bale amid positive wool sale signs

Sheep Central, June 2, 2023

The Kingston 1PP bale accredited this week. Source – AWN, Simon Cameron.

TASMANIAN premier Merino wool operation Kingston Superfine and more confident auction sentiments provided some positive points in the wool market this week.

The Australian Wool Exchange said the 1PP committee approved a bale of wool branded Kingston/Tasmania that tested at 16.9 microns and was classed by Evelyn Archer.

AWEX said to be recognised as 1PP, there is a strict criteria to be met and the wool “must exhibit superlative quality, style and soundness and be prepared in the best possible manner”. This was the first 1PP lot in the southern region since last August, AWEX said.

Kingston principal Simon Cameron said the 90kg 1PP bale was good wool from rugged ‘bush wethers’ off a fair season.

“It was really pleasing that it was given the accreditation … but all credit to the classer (Evelyn Archer), it was a difficult job.”

The wool would probably go into his contract with MJ Bale, he said. Kingston produces about 1-2 1PP bales annually.

Auction market records third dip in a row

AWEX said although the Australian wool market has recorded an overall loss for the third week in a row, not only was the fall minimal, but there were also positive signs late in the series.

“There were initially 47,041 bales rostered for sale, after 11.7 percent was withdrawn prior to sale, the national offering was reduced to 40,106 bales.

“Of this offering, 11.7pc failed to reach seller reserve, leaving just 35,417 bales making its way into exporters’ hands.”

AWEX said in the eastern auction centres the prices on offer did not vary greatly from those of the previous series.

“The movements in the individual Micron Price Guides (MPGs) in Sydney and Melbourne for Merino fleece all ranged within 20 cents of the previous week.

“With the crossbred, carding and skirtings sectors also recording minimal change for the week, the movement in the AWEX Eastern Market Indicator was also marginal.”

AWEX said the EMI fell by 4 cents for the series, closing at 1210 cents/kg clean.

“As mentioned earlier, the week finished in a strong fashion.

“The western region, which was selling last, had a late upward surge.”

AWEX said the Fremantle fleece MPGs added between 19 and 34 cents for the final day and between 26 and 44 cents for the week.

“As this is traditionally a quiet shearing time in the west, as many farmers are well into their cropping programs, quantity dictates that no sale is needed in Fremantle next week.”

With only Sydney and Melbourne in operation the national quantity drops. Currently, 36,300 bales are expected to be on offer next week.

More competitive environment in auctions – AWI

Australian Wool Innovation trade consultant Scott Carmody said a much more competitive environment was witnessed in all sale rooms, with the Fremantle market producing the most significant results by lifting 25 to 40 cents.

“Nationwide, sellers were more prepared to meet the market and resulted in a clearance rate of over 88pc.

“Unlike the preceding few weeks of selling, buyers were fully engaged in purchasing from the outset with a strong lead being shown by the first stage manufacturers to stay in the market and accumulate inventory,” he said.

“Assumptions can be made that these influential processors see value at the moment and are prepared to support, particularly the Merino sector.

“China’s largest two top makers accounted for around 30pc of this week’s Merino fleece sales and were fully supported by the locally traders whom gained more confidence as the week progressed,” he said.

Mr Carmody said the flow of greasy wool into first stage processing operations continues unabated, with blockages further up the chain preventing the ability of significant price gains being made for the moment.

“Most spinners of wool now report full bookings, factory’s running to full production levels, but are playing catch up after exorbitant energy costs, staffing issues, COVID shutdowns and other issues put them somewhat behind.

“Once schedules get back to normal timings, a clearer demand picture should be forthcoming,” he said.

Click here to see the latest AWEX Micron Price Guides.

Source – AWEX, AWI.