Australian Market Back on Downward Track

After recording healthy gains during the previous week's series, the Australian wool market could not maintain an upward trajectory and recorded losses in Week 49. As only Sydney and Melbourne were in operation, the national offering was just 21,787 bales - the lowest weekly quantity since June 2018.

The small offering might have had a negative impact, as some exporters were not confident of filling orders with such a limited selection available. This meant that some buyers were not as active as they would have been when a larger quantity is available. The limited number of good-style wools with favorable additional measurements were highly sought after, and these wools recorded minimal change for the series. Lesser style lots and those carrying poor additional measurements lost ground - generally 30 to 50 cents. These losses pushed the individual Micron Price Guides down by 20 to 40 cents.

The AWEX Eastern Market Indicator lost 23 cents for the series, closing the week at 1,864 Australian cents. The EMI has now fallen in four out of the previous five weeks, losing a total of 96 cents since Week 44. Due to currency movement, the losses when viewed in U.S. dollars were not as severe - the EMI lost only 7 U.S. cents this week.

The crossbred sector also tracked downward, but not as steeply as the merinos as prices generally fell by 5 to 10 cents. Thirty micron, however, managed a small increase for the week - the only quoted MPG to record positive movement for the series. The cardings lost further ground. The three carding indicators have now fallen by an average of 571 cents from the record highs set in September of last year. Sales resume in Fremantle next week after a one-week recess, which has helped push the national quantity up to 29,989 bales, with selling in all three centers.

Source: AWEX