Australian Wool Market Subdued This Week
February 16, 2018
After the tumultuous ups and downs witnessed since the beginning of the calendar year, the Australian Wool Market performed in a more subdued manner in Week 33. There was more wool on offer than the previous sale, with 42,519 bales on offer to the trade nationally, including Tasmanian wools being featured in Melbourne.
Despite the slight increase in quantity, competition remained high. Noticeable, was the fact that wools carrying slight faults started to receive smaller discounts as buyers focused more and more on length and strength results.
These lots are becoming increasingly difficult to quote, as some buyers adopt a “buy at best” attitude in the sale room. The opposite was true of wools with high mid breaks. These wools were heavily discounted and the increased quantities of these types was a large factor in the Micron Price Guides recording falls. Overall, the Benchmark Eastern Market Indicator posted a negligible 6-cent drop, closing at 1812 Australian cents. Worth noting, however, is due to currency movements, when viewed in USD terms, the EMI recorded a 14-cent rise to close at 1437 American cents.
The crossbred sector – for the first time in many weeks – managed to outperform the merinos. General price increases of 5 to 15 cents were felt across the board, keeping the EMI from falling further than it did. Buyer interest was again centered on the better prepared lines, earning these wools the greatest price increases.