Weekly Market Report
Mark Dyson, Managing Director
Stabilising week for market
2 February 2018
After the previous sale where the Eastern Market Indicator (EMI) fell by more than 50 cents, the wool market opened this week with buyers being cautious and selective in their purchases on a slightly reduced national offering of 39,585 bales.
By the end of selling, the Eastern Market Indicator (EMI) had posted a small reduction of six cents to close the week at 1738 cents per kilogram clean.
The first day’s sale saw most Merino micron wools selling at discounted levels, apart from those with very low mid-breaks which attracted strong demand due to their scarcity.
The downturn saw the 18-20 micron range decrease by 10-20 cents, with the 21-23 micron range bucking the trend and making small gains to increase by 3-6 cents.
The second day’s selling saw the market bounce back as buyer confidence slowly returned, with the 18-20 micron range increasing up to 21 cents clean and the 21-23 micron range again finishing slightly in sellers favour.
The crossbred sector performed with mixed results this week, with the finer and broader edges managing to record small gains of 5-10 cents.
The bulk of the offering, however, was in the 26-30 micron range and these types slipped another 10-20 cents.
The oddment sector lacked buyer confidence after large losses in the previous few weeks, with all types and descriptions further discounted as the market struggled to find a level.
Prices generally fell by 30-50 cents, sending the carding indicators down by an average of over 40 cents.
The skirting market also experienced an up and down week, with prices generally falling by 20-40 cents on the first selling day, only to recover the losses on the second day to finish generally unchanged.
Next week sees a slightly increased national wool offering of 40,686 bales, with 20,803 of those to be sold from the Melbourne selling centre.