Australian Market Slides for Second Consecutive Week
The softer tone evident toward the end of the previous week’s sale carried forward this week, resulting in price corrections in Week 46. Prices were reduced from the opening lot of the first selling day and then slowly – but noticeably – fell as the day progressed.
The Western region – which sold last on Wednesday – recorded the largest falls, generally 45 to 65 Australian cents. The drop in price was met with firm seller resistance, as sellers were not prepared to accept the reductions. This resulted in a passed in rate of more than 48 percent. The losses felt late on the first selling day in the West, were quickly realized when the Eastern centers opened on day two.
By the end of the series, prices across all merino microns had generally fallen by 50 to 80 cents. As a result, the national passed in rate was 21.7 percent – the highest figure since October 2018. The losses pushed the AWEX Eastern Market Indicator down by 59 cents – a 3 percent drop. The EMI fell back below 1,900 cents, closing at 1,893 Australian cents. This was the largest weekly fall in the EMI since November of last year. The EMI is now 223 cents below the record it set in August 2018 and 50 cents lower than the corresponding sale of the previous season.
After recording general rises for the past seven weeks, the crossbred sector suffered some large losses this week. After reaching record levels in the previous few sales, the individual Micron Price Guide for 28.0 micron was the hardest hit, losing 143 cents for the series in the Southern region. This was a 10.8 percent reduction and the largest weekly fall in the 28.0 MPG since May 2003.