Weekly Market Report
Mark Dyson, Managing Director
More sharp falls in week 47
24 May 2019
Following on from the large losses experienced during the previous week’s sales, the Australian wool market continued its sharp downward path in Week 47.
The Eastern Market Indicator (EMI) lost 60 cents for the series to close the week at 1,833 cents per kilogram clean, representing a fall of 119 cents (or 6%) over the last two weeks.
Buyer confidence was very low, with exporters trying to see at what point the market would settle, as prices opened lower and then continued to fall as the sale progressed (and due to a lack of quantity the Western region was reduced to a one-day sale).
By the end of the first selling day prices had generally been discounted by 40 – 60 cents, as the large reductions in price resulted in a passed in rate of 48.7% which combined with the 10% of wool withdrawn prior to sale, meant that only 41% of the original offering was sold to the trade.
There were positive signs on the second selling day in the Eastern centres, where only minimal price movements were felt.
The crossbred sector also suffered further large price reductions, with weak buyer demand resulting in 26.0 – 32.0 micron generally falling by 50 – 110 cents.
After hitting a record level three weeks ago, the Micron Price Guide (MPG) for 28.0 micron has fallen by 219 cents over the past two sales.
Looking to next week, there is currently 31,462 bales rostered for sale in Sydney, Melbourne and Fremantle, with the latter again a one-day sale as dictated by quantities.