Australian Wool Market Off Slightly This Week

After rising for the past two weeks, the Australian wool market couldn't continue its upward run in Week 45. The national quantity reduced significantly from the previous week, as 10,252 less bales than the previous week - a drop of 23.8 percent - were available for sale.

The effects of the drought continue to be evident in the selection, pushing both yields and quantities down. Compared to the corresponding sale of the previous season, there have been 204,381 less bales offered - a reduction of 12.1 percent. So far this season, 26.4 percent of the merino fleece offering has been style 4. This is 15 percent lower than the same time last season.

Despite the reduced quantity, buyer activity could best be described as cautious. The result was a softening market, and by the end of the series prices had generally reduced by 15 to 40 Australian cents.

Some off-style and inferior types struggled for buyer attention and were up to 50 to 70 cents cheaper. The AWEX Eastern Market Indicator lost only 8 cents for the series, closing the week at 1,952 Australian cents.

The crossbreds continue to be the strongest performing sector of the market. Strong buyer demand helped to defy the trend seen in the merinos, pushing prices higher. Twenty-six to 28.0 micron generally rose by 10 to 15 cents, and the better-prepared lines enjoyed the greatest gains. The increases pushed the individual Micron Prices Guide for 28.0 micron further into record territory in both Melbourne and Sydney. The rise in the crossbred MPGs is the reason behind the EMI only recording an 8-cent loss.

Source: AWEX