Weekly Market Report
Mark Dyson, Managing Director
Stunning market turnaround
13 September 2019
The positive signs on the final day of last week’s sale have proven to be a precursor, with the Australian wool market turning around in stunning, record-breaking fashion in Week 11.
Buyer confidence returned from the fall of the first hammer and with it came strong bidding, resulting in huge price increases.
The Eastern Market Indicator (EMI) closed the week at 1,535 cents per kilogram clean, an overall increase of 170 cents – the highest weekly increase in the EMI on record.
Main buyer focus was on the broader microns, pushing Micron Price Guides (MPGs) for 19.0 micron and coarser up by 160 – 200 cents.
As Fremantle did not sell on Thursday last week and missed the price rises the Eastern centres enjoyed, the Western region posted the largest gains of the day of 176 – 235 cents.
The Western Market Indicator rose by 198 cents, the largest increase since AWEX records began (1995).
The Southern and Northern region also posted record increases, 132 cents and 126 cents respectively.
On the back of these record gains, the EMI added 130 cents for the day, again the largest daily increase in history.
On the second selling day only Melbourne and Fremantle were in operation, with the reduced offering again came under intense buyer demand and prices continuing to rise.
The MPGs rose by another 40 – 100 cents, pushing the EMI up a further 40 cents.
Large price increases have enticed sellers back to the market, with next week’s offering increasing to 31,107 bales and all three centres in operation.