Weekly Market Report
Mark Dyson, Managing Director
Market finally drops after boom month
8 June 2018
A significant rise in the Australian dollar trading above 77 US cents against a lower national offering of just below 27,000 bales was enough for the wool market to buckle after four consecutive weeks of rises.
At week’s end, the Eastern Market Indicator (EMI) had retreated by 16 cents clean to finish at 2011 cents per kilogram clean.
As with recent weeks the wool offering was a slightly mixed bag with a littering of poorer style types, with low n/kt strength types and wools expressing higher fault being discounted greatest. Well measured wools commanded keen trade competition on the limited supply of these types.
Categories finer than 19 micron faired worst this week easing 40-50 cents clean, with the medium to broader Merino types only marginally cheaper easing 5-7 cents clean on last week’s quotes.
The 23 micron category indicator went against the grain, actually increasing by 13 cents to finish at 2231c/kg clean.
Skirting types followed a similar trend to the fleece categories falling 30-50 cents clean for the week, with the wools expressing higher fault under the most pressure.
The crossbred wool categories eased marginally and generally were in buyers favour with the carding sector being 3-5c/kg cheaper compared to last week’s market.
The adjustment in pricing was enough to see the passed in rates increase marginally nearing five per cent of the offering, but still below the seasonal average of six per cent.
Next week sees the Fremantle selling centre come back into action, with the national wool offering from the three selling centres equating to just under 29,000 bales.