Australian Wool Market Down Again This Week
September 28, 2018
The Australian wool market has continued its downward trend, adding further losses to those experienced in the previous sale.
Melbourne sold in an unusual pattern, selling on Tuesday and Wednesday due to a Friday public holiday celebrating the AFL Grand Final. This meant Melbourne opened proceedings, selling in isolation on Tuesday. The market opened with discounts from the opening lot. Prices continued to fall as buyers became increasingly selective with their purchases.
Sydney and Fremantle resumed sales on Wednesday and quickly realized the losses experienced in Melbourne, then further price reductions were felt in all three centers. The Western region was the hardest hit, resulting in the Western indicator falling by 74 Australian cents for the day. Sydney recorded more losses on the final day, however Fremantle managed to hold steady, even recording small price increases in selected microns. By the end of the series, prices had fallen by 50 to 90 Australian cents when compared to the previous week, with the losses felt across all microns. The AWEX Eastern market indicator fell by 54 cents, closing at 2,013 Australian cents. This was the largest fall in the EMI since it lost 62 cents in July.
The skirting market suffered similar corrections to the fleece. Prices generally fell by 60 to 80 Australian cents, and wools carrying more than 4.0 percent vegetable matter were most affected by the falling market. The crossbreds also lost ground for the week, but not to the same extent as their Merino cousins. The losses were generally 20 to 40 Australian cents. The oddment sector was the poorest performer for the week. A limited selection struggled to attract buyer support and prices were generally discounted by more than 100 cents.
The national offering continues to increase, next week there is currently 42,546 bales rostered for sale in Sydney, Melbourne and Fremantle.