Australian Wool Market Off For Second Straight Week
March 8, 2019
The Australian wool market recorded losses for the second consecutive series in Week 36. The national offering reduced slightly as 45,130 bales were available to the trade.
A limited selection of good style wools with favorable additional measurement results and low vegetable matter came under intense pressure as buyers fought hard to secure their share of these types. This strong competition meant that these better wools recorded very little change for the week.
However, the bulk of the selection, was lesser style wools, and wools with poor additional measurement results. The large amount of these types meant that buyers struggled to average them into their purchases. The result was a continuing reduction in prices for these lots. By the end of the series, these inferior types were selling at levels generally 30 to 60 cents below those achieved at the previous sale. These reductions played a large role in the overall fall in the individual merino Micron Price Guides, which fell by 10 to 40 Australian cents. The drop in the merino MPGs was the reason behind the AWEX Eastern Market Indicator falling by 8 cents and closing the week at 2,008 Australian cents.
It was only the strength of the other sectors that prevented the EMI from falling further. The crossbreds continued to track upward as prices generally rose by 15 to 30 Australian cents. Better prepared lines received the most attention and, as a result, enjoyed the largest increases. The only exception was 30.0 micron, which fell by around 20 to 30 Australian cents.
The strongest performing sector was the oddments. Most types and descriptions rose by 20 to 50 Australian cents, pushing the three carding indicators up by an average of 30 cents.