Australian Wool Market Still Looking To End Slide
April 5, 2019
The Australian wool market was unable to halt its continued slide in Week 40. Despite the national offering increasing slightly to 37,454 bales, quantity is still well down when compared to the corresponding sale of last year.
There have been 141,265 fewer bales offered this season – a reduction of 9.6 percent. As mentioned in last week’s commentary, the amount of lower-yielding wools continues to rise and the increase in these lesser-style wools is pushing down the average national yield.
In a continuing trend, the prevalence of these types is contributing to the downward pressure on the market. Higher-yielding, good-style wools continue to be highly sought after. However, there aren’t enough of these wools to prevent overall reductions in the individual Micron Price Guides. The MPGs generally fell by 10 to 20 Australian cents, pushing the AWEX Eastern Market Indicator down by 4 cents for the series as it closed the week at 1,943 Australian cents.
The EMI has now fallen for six consecutive weeks. This is the longest downward run since September 2012. Back then the EMI lost 150 cents or 19.3 percent. The losses accrued during the last six weeks of this season have not been as severe – the EMI has lost 84 cents, a reduction of only 4.5 percent.
The crossbred sector has continued to defy the trend of the merinos, recording increases for the third week in a row. Strong demand helped push prices higher – generally between 10 and 25 cents. It was the increases in the crossbreds that prevented the EMI from suffering a larger fall than it did. In a positive sign, the Western region (which sold last in the series) sold strongly to finish the week, and managed overall increases.