Weekly Market Report
Mark Dyson, Managing Director
Upward trend can’t be maintained
4 October 2019
Three weeks of sharp upward movement couldn’t be maintained by the Australian wool market this week, which retreated back to negative territory.
While the price spike of the previous three weeks encouraged more sellers to the market with an increased overall quantity of 37,021 bales on offer, the Eastern Market Indicator (EMI) lost a total of 98 cents for the week to close at 1,511 cents per kilogram clean.
The sharp drop in price was met with firm seller resistance, resulting in a national passed in rate of 33.9%.
The final day losses from Fremantle last week were quickly realised in the East when markets opened, and by the end of the first day individual Micron Price Guides (MPGs) in Sydney and Melbourne had fallen by 57 – 80 cents and the EMI by 51 cents.
Having recorded earlier losses, the MPGs in the Fremantle region only fell by 30 – 36 cents.
The second selling day saw the market continue to track downward, with MPGs across all three centres falling by a further 32 – 93 cents and the EMI down by another 47 cents.
The only sector to make positive movement for the week was the cardings, with modest price increases pushing the three carding indicators up by an average of four cents.
This week’s price reductions have left many sellers uncertain, and as a result the national offering for next week reduces to 34,174 bales.