Australian Wool Market Down For Fourth Straight Week
March 22, 2019
The Australian wool market continued its downward trend, recording overall losses for the fourth consecutive series in Week 38.
A continually diminishing supply of good-style wool – in particular those with favorable additional measurement results – attracted excellent competition and, as a result, recorded minimal losses. However, due to seasonal conditions, a large part of the offering was lower-style types – many of which also possessed poor additional measurement results.
Wool with styles 6 and 7 made up 15.4 percent of the merino fleece offering – the highest level since June 2010. Due to the prevalence of these wools, buyers have again struggled to average them into their purchases. The result was the continued discounting of these types as the series progressed. By sale’s end, prices being achieved on these lower-style types was generally 20 to 40 Australian cents below those achieved at the previous week’s sale.
It was these price reductions that were the driving force behind the losses recorded in the individual Micron Price Guides. The AWEX Eastern Market Indicator fell by 16 cents for the series, to close at 1,963 Australian cents. Worth noting, due to the strengthening of the Australian dollar (the AUD got as high as 71.62 U.S. cents on Thursday – its highest level since the Feb. 27), when viewed in U.S. dollar terms, the EMI rose by 5 cents.