Weekly Market Report
Mark Dyson, Managing Director
Solid rises in Week 17
25 October 2019
Positive sentiment from the final selling day of last week has continued into Week 17, with the Australian wool market recording two consecutive days of solid rises this series.
Price increases were evident from the opening lot and strengthened all the way to the final hammer in Fremantle, with Micron Price Guides (MPGs) rising by 10 – 31 cents in the East and 35 – 49 cents in the West.
With Sydney selling on the first day only, Melbourne opened in isolation on day two and the market continued to rise, albeit modestly when compared to the first day gains.
Melbourne MPGs rose by 10 – 34 cents and on the back of these increases, the Eastern Market Indicator (EMI) added a further 14 cents to close the week 28 cents higher at 1,545 cents per kilogram.
The Fremantle region also continued to strengthen, with MPGs in the West adding another 26 – 36 cents.
In a rare turn of events, the Fremantle MPGs for 19.5 – 21.0 micron are sitting above those of the Eastern Centres.
The crossbreds also performed better than in recent weeks, with solid gains on the second selling day in Melbourne seeing crossbred MPGs add 10 – 32 cents for the week.
While the large passed-in rates of the previous two months mean there is a growing stockpile of wool sitting in the stores of brokers, the price rises of the past week has encouraged many sellers to market with next week’s national offering increasing to 39,446 bales.