Wool Prices Take a Corrective Turn
March 31, 2017
After recording eight consecutive weekly changes without a loss, the Australian wool market retreated this week. The Eastern Market Indicator dropped 44 cents for the week to close at A1502 cents, the largest fall in the EMI in almost two years. The EMI in U.S. dollar-terms fell 33 cents to US1151 cents clean with the Australian dollar to the U.S. dollar exchange rate at US76.61 cents, a weekly rise of 0.04 cents.
Fine wools, 19.5 and finer, realized the most significant increases during this upward trend in the market and also experienced the most significant decrease this past week. No micron group escaped the price reductions with the entire merino sector generally dropping between 40 to 90 cents. Although better style/spec types were least affected, they too were a good 20 to 40 cents cheaper than the previous sale.
As the price of broader wools dropped more than the finer microns, the price differentials between microns continued to widen. At the corresponding sale last season, the difference between 18.0 and 21.0 micron wools was only 85 cents; in just 12 months, the price differential has propelled to more than 720 cents.