Weekly Market Report

Mark Dyson, Managing Director

Mark Dyson

EMI solid after roller coaster week

The first week back after the annual Easter sale recess brought an increase in the national wool offering to over 54,000 bales, well above last year’s levels.

On a slightly roller coaster week, the Eastern Market Indicator (EMI) finally found solid ground to finish at 1776 cents per kilogram clean, an increase of four cents clean on a fortnight ago.

The Australian dollar trading at mid-77 cents US initially saw the wool market take an easing trend on the first day’s trade, with the Merino 17-23 micron types decreasing 5-60 cents clean, the finer 17-18 micron categories falling the most.

As the week progressed, buyer confidence returned to the market for Merino types and by the end of day two trading pricing movements saw only a minor easing in values against the first day.

The final day’s trade saw a turnaround in fortunes, as the fine 17-18 micron Merino wools regained their losses from earlier in the week with the 19-23 micron types returning to positive territory.

Finer and low fault skirting types increased marginally for the week, with the heavier vegetable matter lots retreating further to be 20-30 cents clean easier.

The 26-30 micron crossbred wool types continued to find solid trade demand for well-prepared lots, finishing the week out 15-37 cents clean above pre-Easter levels.

The oddments types rallied later in the week, particularly for the lower fault types which were in limited supply, with locks and crutchings increasing 15-25 cents clean.

Forward contract levels also revitalised, with some good pricing indications on offer.

Next week sees the national wool offering reduce to 40,596 bales across the three selling centres, with Melbourne to host over 50 per cent of the volume.