Australian Wool Market Continues Downward Trend

The Australian wool market recorded further losses in Week 50. The Fremantle region resumed sales after a one-week recess, helping to push the national offering up to 28,140 bales. But with only two weeks remaining on the 2018-19 wool selling program, the national offering has fallen by 220,733 bales - a reduction of 12 percent when compared to the 2017-18 season.

Best-style wools with good additional measurement results attracted strong demand and recorded only minimal losses. The lesser-style wools and those with poor additional measurement results, however, lost buyer support and continued to lose ground. By the end of the series these types were generally selling at levels 50 to 90 cents below the prices achieved in the previous week.

The price reductions resulted in the AWEX Eastern Market Indicator losing 41 cents for the series, to close the week at 1,823 Australian cents. After a strong start to the calendar year - where the EMI rose for the first seven weeks, climbing from 1,862 cents to 2,027 cents - the EMI has now fallen for five of the previous six weeks, dropping a total of 113 cents during this period. The EMI is now 293 cents below the record of 2,116 cents it achieved in August of last year and 198 cents lower than the same time last year - a fall of 9.8 percent.

The crossbred sector recorded losses - generally between 20 and 30 cents. The poorly prepared lines were most affected as buyers focused on the better wools. The oddments were also discounted. Most types and descriptions fell by 20 to 30 cents, and this was reflected in the three carding indicators as they fell by an average of 20 cents.

The Fremantle region will have another one-week recess in Week 51. Currently there are 19,745 bales rostered for sale, with selling in Sydney and Melbourne only.

Source: AWEX