Mild Correction in Wool Prices
October 18, 2013
Wool volumes returned to typical mid-October levels this week when just over 46,000 bales were offered throughout Australia. After recording increases of 30- to 50-cents last week, this sale saw prices undertake a mild correction. The Australian Wool Exchange’s Eastern Market Indicator finished the week 14-cents lower after losses of 10 cents and 4 cents, however, falls in the Merino fleece sector were more like 20- to 30-cents.
Most of the damage was on the opening day (Wednesday) with some stability appearing on Thursday when the losses were restricted to 5- to 15-cents. Price levels actually improved over the day, especially in the broader microns. A sign of the firming trend on the day was a positive finish to the Fremantle market late in the day when fleece types closed 5-cents ahead.
Buyers appeared to be more selective in their purchases during the week, which resulted in a widening gap between the better types and those displaying any type of fault.