Australian Wool Market Down This Week
September 15, 2017
After last week’s steady market where the Benchmark Eastern Market Indicator lost only 2 cents, this week has saw a return to large movements, this time corrections. The tone was set early on the first day when types were quickly discounted.
The finer edge of the offering, in particular wools with unfavorable test results, were the hardest hit, in some cases losing more than 80 cents when compared to the previous sale. Generally, the losses were 30 to 60 cents with the effects felt across the entire merino spectrum. The EMI fell by 28 cents for the day.
The second day the market managed to settle, most types and descriptions traded at levels that were plus or minus 10 cents of those achieved on the previous day. The exception was Melbourne, which posted larger losses for some types, in particular the 18.0 to 19.5 micron bracket which recorded falls of 20 to 30 cents.
The EMI recorded a 3-cent drop, to finish the week at 1525 cents, an overall reduction of 31 cents. Although the EMI only dropped by 2 percent for the week, the passed in rate in the fleece sector was over 15 percent, showing grower reluctance to accept the marginal reduction in price.
The crossbreds followed a very similar path to the merinos, heavy losses on day one, then settling on day two. However, reductions of around 15 to 30 cents were still experienced for the week. The skirting market also closely mirrored the fleece, falls then consolidation to record general losses of 20 cents, faultier types most affected.
The oddment market was the best performer for the sale. Although there was a limited offering, strong competition enabled the three carding indicators to show on average, small improvements.