Weekly Market Report

Mark Dyson, Managing Director

Mark Dyson

Australian dollar strengthens

While the Australian dollar surged to its highest point of 2016 this week, the wool market came under pressure.

As a result, the Eastern Market Indicator (EMI) lost 10 cents per kilogram to rest at 1258c/kg clean.

The strength of the dollar equated to a rise of US1.27C against the greenback, seeing a 9c/kg gain for the EMI in US terms.

A smaller offering of 39,850 bales did little to rally the market, and 7.4 per cent were passed-in.

The trend was similar to last week’s sale, although the losses weren’t as great and in the south generally ranged from 6-16c/kg in the Merino fleeces.

Again, buyers showed a clear preference for better types and that was directed towards a special Tasmanian catalogue offered in Melbourne.

The finer end of the catalogue took a hit of 11-13c/kg, the latter of which was for the 17.5 micron sector which closed at 1498c/kg.

In the medium to broader types, there was a little more variance but the 22 micron range saw the largest movement, shedding 16c/kg to 1354c/kg.

Skirtings looked to rally early on, but then got dragged down by the rest of the market to see a loss of 20c/kg.

Crossbreds showed some promise and the finer types made gains of up to 11c/kg, while the broader types had a tougher run.

Cardings closed 7c/kg lower in the south, resting at 1122c/kg.

Next week the offering is tipped to peak above the 40,000 bale mark again, with 42, 998 bales expected to go under the hammer.