Weekly Market Report
Mark Dyson, Managing Director
Market swings upward
11 October 2019
The large fluctuations of the Australian wool market have continued this week, with the movement this time in a positive direction.
With a reduced national offering of 28,149 bales presented for sale, the Eastern Market Indicator (EMI) rose by 14 cents for the week to close at 1,543 cents per kilogram clean.
As the sales commenced in Melbourne and Sydney, it was immediately apparent that this week’s market would trend in an upward direction, with 18.5 micron and coarser wools enjoying the largest price increases.
The individual Micron Price Guides (MPGs) in the East for these wools spiked by 28 – 47 cents on the first day, resulting in the EMI rising by 18 cents to 1,529c/kg.
As the news of the rises made its way to Fremantle, many sellers decided against offering their wool resulting in 34% of the total offering and over 37% of the fleece being withdrawn prior to sale.
This significant reduction in the offering put extra pressure on what remained, pushing the MPGs in Fremantle up by 39 – 55 cents.
The second selling day saw the market consolidate, adding small increases to those of the previous day with MPGs across all three centres risingg by 4 – 34 cents.
Next week’s national offering increases, and as it currently stands there is 40,056 bales rostered for sale.