Weekly Market Report
Mark Dyson, Managing Director
Moderate market losses
8 November 2019
After two weeks of steady rises, the Australian wool market reverted back to its roller coaster ways in Week 19 with a series of moderate falls.
With Fremantle recording losses on the final day of the previous sale, the softer tone continued into this week resulting in price reductions from the opening hammer in the Eastern markets.
The medium microns were the hardest hit, with individual Micron Price Guides (MPGs) for 19.0 micron and coarser falling 28 – 45 cents across all three centres.
On the back of these losses, the Eastern Market Indicator (EMI) fell by 24 cents for the day.
The market continued to track downward on day two, with individual MPGs falling by a further 12 – 17 cents in the South and 20 – 50 cents in the North, pushing the EMI down another 15 cents.
Overall, the EMI lost 39 cents for the week to close at 1,555 cents per kilogram clean – although in a reverse pattern to the previous sale, Fremantle managed small 5 – 10 cent price increases on the final day setting a positive tone for next week.
The crossbreds also lost ground, with a lack of buyer support for poorly prepared lines contributing to the MPGs for 26.0 – 30.0 micron falling by 27 – 49 cents.
The three Merino Carding (MC) indicators also fell by an average of 29 cents, with these losses mainly driving the 40 – 50 cent reduction in the price of locks.
Next week’s national offering is 38,497 bales with selling in Sydney, Melbourne and Fremantle.