Weekly Market Report
Mark Dyson, Managing Director
Low yielding wools discounted
29 March 2019
Week 39 of the Australian wool market continued the recent pattern of “two markets” occurring – one for the good style/higher yielding wools and one for the lesser style/lower yielding types.
Due to the diminishing supply of the better wools, good style lots again attracted excellent buyer support and sold at levels similar to M38.
However, inferior/lower yielding wools were discounted as buyers again struggled to average them into their purchases.
The result of these discounts was overall reductions in the individual Micron Price Guides (MPG) which in turn pushed the Eastern Market indicator (EMI) lower for the fifth consecutive week, losing 16 cents to close at 1,947 cents per kilogram clean.
Due to seasonal conditions the amount of fleece wool yielding less than 60 per cent dry continues to rise, with history from previous drought years suggesting the amount could continue to increase through April.
Crossbreds continue to buck the trend of the other sectors rising 15 to 20 cents, however the oddments had another week of sharp falls, the three indicators falling by an average of 36 cents.
The offering increases slightly next week, with 38,212 bales rostered for sale from the three centres.