Australian Wool Market Continues Downward Slide

The penultimate sale of the 2018-19 wool selling season produced another week of losses, following in the footsteps of price reductions experienced during the previous two weeks.

As the Fremantle region had another one-week recess, only Sydney and Melbourne were in operation. The total national offering was only 19,072 bales. From the opening lot, it was immediately apparent that buyer confidence was low.

Prices across all microns were generally discounted by 20 to 40 cents, then slowly but noticeably deteriorated as the day progressed and the market struggled to find a solid level. By the end of the day, most types and descriptions were selling at levels 40 to 60 cents below those achieved at the previous sale.

This was reflected in the individual Micron Price Guides, which fell by a similar amount. As a result, the AWEX Eastern Market Indicator lost 52 cents on the first day of selling. The second day of selling, the market generally recorded further losses but not to the same extent as day one. Some broader MPGs in the Southern region managed small increases as the market found a level. Despite a more positive tone, the EMI lost a further 5 cents, closing the week at 1,766 Australian cents - an overall loss of 57 cents.

The EMI is now 350 cents below the record it achieved in August of last year - a reduction of 16.5 percent. The EMI has fallen 307 cents since the corresponding sale of 2018 - a loss of 14.8 percent.

The oddment market had an up and down week, losing 20 to 30 cents on the first selling day, then recovering 5 to 10 cents of those losses on the second. Fremantle returns next week for the final sale of the season. Currently, there are 30,872 bales rostered for sale, with selling in all three centers.

Source: AWEX