Australian Market Stable in Uncommon Week

Week 13 on the Australian wool selling calendar hosted an unusual pattern. Melbourne opened proceedings on Tuesday with a stand-alone sale. The benchmark Eastern Market Indicator only took into account the Southern Region and following a 9-cent fall in the Southern Market Indicator, the EMI dropped by 6 cents to 1519 cents.

On Wednesday, all three centers were in operation, but the EMI remained unchanged at 1519 cents after a small rise in Melbourne and a minimal drop in the Northern Indicator. The Western Indicator recorded a 13-cent fall, mainly because of medium microns suffering a 20- to 30-cent reduction. Thursday, only Sydney and Fremantle sold. The EMI was only affected by the Northern Region, and following an 8-cent rise in the Northern Market Indicator, the EMI managed a 3-cent lift, closing the week at 1522 cents for an overall decrease of a modest 3 cents.

There has been much anecdotal evidence of a high occurrence of recently shorn wools carrying large mid-breaks and figures compiled back this up. This week more than half of all fleece wool on offer nationally was carrying a mid-break of 50 and above. With such a large percentage of the offering possessing these unfavorable results, discounts are inevitable and that is exactly what is transpiring. The discounts for these wools continue to grow as buyers struggle to average them into their purchases.

The skirting market had another up and down week. Prices generally fell on the first selling day by 15 to 20 cents, then rose by a similar amount on the second day, to finish relatively unchanged. The crossbred market lost further ground this sale, in general terms price reductions of 10 to 20 cents were felt across the board. The oddment sector continues to perform well. Another limited selection was keenly contested, pushing prices higher.

Source: AWEX