Australian Wool Market Slides Again This Week
March 16, 2018
After the downward movement experienced in Week 36 – where the Benchmark Eastern Market Indicator lost 52 cents – the Australian Wool Market suffered further corrections this week. As is often the case in a falling market, buyers became more selective in their purchases.
The result was that small impurities that were overlooked in the rising market suddenly attracted discounts. Wools with high mid-breaks (>75 in particular) were also heavily discounted as buyers struggled to average them into their purchases.
Inversely, any lots possessing mid-breaks of less than 40 attracted significant premiums and in some cases sold at levels close to those achieved at the previous sale. In general terms, 20.0 micron and finer lost 40 to 60 Australian cents, while the broader microns in 20.5 and coarser were less affected and posted discounts of 20 to 40 cents. The result was a 27-cent reduction in the EMI, which closed the week at 1751 Australian cents. The EMI has dropped 83 cents during the previous six selling days, which equates to a 4 percent drop.
After being the only sector not to suffer corrections last week, the crossbreds succumbed to the falling market in this sale. All types and descriptions across the entire spectrum recorded general losses of between 10 and 20 cents, with the poorly prepared lines suffering the greatest reductions. The oddments have continued their downward trend, losing ground for the fourth consecutive week.
Prices were generally reduced by 10 to 30 Australian cents, resulting in the three carding indicators falling by an average of 17 cents.