Australian Market Records First Loss of 2019
March 1, 2019
After rising for eight consecutive sales, the Australian wool market recorded losses in Week 35. When compared to the previous sale, the AWEX Eastern Market Indicator closed 11 cents lower. It was the first week-on-week loss for the 2019 calendar year.
The rally concluded last week at eight consecutive sales of increases – seven consecutive sales since the first sale of the year – the best start to a calendar year since 2006. Last week’s price increases encouraged more sellers to the market, resulting in 48,948 bales on offer nationally. This was the third largest sale of the season. Despite the increased offering, the yearly national offering is still well down. There have been 173,927 less bales put through the auction system, compared to the same time last year – a reduction of 13.4 percent.
Melbourne again sold in isolation on the first day of selling. The market quickly realized the losses that were experienced in the Western region on the final selling day of the previous week. Prices generally fell by 25 to 35 Australian cents. When sales resumed on the second day, it was Sydney’s turn to record these losses – generally 15 to 35 cents. Melbourne and Fremantle steadied, however, and both centers recorded modest increases for the day.
In a contrast to the previous week, there were positive signs to finish the series. The three regional indicators all recorded increases on the final day. Fremantle selling last recorded the largest increase as the Western Indicator rose by 12 cents. It is also worth noting that the Fremantle region recorded healthy increases, when compared to the previous week.
The crossbreds had mixed results. Twenty-eight and 30.0 micron dipped slightly below the records achieved last sale, while 26.0 and 32.0 managed 20-cent increases.
Next week quantities reduce slightly, currently there are 46,128 bales on offer in Sydney, Melbourne and Fremantle.