Wool Prices Down This Week
May 26, 2017
Week 47 on the wool selling calendar has seen the market react with substantial corrections across the entire merino micron range. A national offering of just more than 34,000 bales included more than 10 percent of wool that had previously been offered for sale.
The average indicator of all microns, the Eastern Market Indicator, remains 20 percent higher than last year at this time (509 as compared to 424 Australian cents per kilo), and the U.S. exchange rate is 4 percent higher than last year at this time (72.10 vs. 75 AUD to US cents). The large shift in lower prices in the past week was for 16.5 to 19 micron. The market saw less of a decrease from 20 to 30 micron wools. However, the fine micron wools (16.5 to 19.5) have experienced the largest increase this year, and there are wider price differences between the fine and medium micron wools. Overall, the EMI was down 27 (AUS) cents for the week.
The odd lot of high style wool exhibiting excellent test results were not as badly affected, but any wools normally receiving only small discounts quickly lost buyer support. The skirting market headed in the same direction as the fleece, finer wools and lots carrying higher vegetable matter levels were hardest hit, in some cases dropping more than 80 cents for the week. A very limited selection of oddments saw keen competition among the carding buyers, enabling this sector to go against the trend and record small increases for the week, pushing the regional indicators up an average of 5 cents.
The crossbreds performed relatively well. Strong competition was evident and most types and descriptions only eased by 5 to 10 cents. The amount of wool coming onto the market continues to retract.