The Australian wool market could not sustain the sharp upward trajectory of the previous three weeks, recording negative movement instead. The large price spike of the previous three weeks encouraged more sellers to the market, resulting in a significant increase in the overall quantity, nationally there was 37,021 bales on offer. Although the Eastern markets recorded solid gains on the last day in the previous series, the Western region selling last, recorded losses of between 30 and 70 cents.
These losses were quickly realised in the East when markets opened, and the losses were then compounded as the day progressed. By day’s end the individual Micron Price Guides (MPGs) in Sydney and Melbourne had fallen by 57 to 80 cents. On the back of these losses the AWEX Eastern Market Indicator (EMI) fell by 51 cents. Having recorded earlier losses, the MPGs in the Fremantle region only fell by 30 to 36 cents.The second selling day saw the market to continue to track downward. The MPGs across all three centres fell by a further 32 to 93 cents.
The EMI fell by another 47 cents, losing a total of 98 cents for the series, to close the week at 1,511 cents, the largest weekly fall since the end of August this year. As in recent weeks, the sharp drop in price was met with firm seller resistance, this resulted in a national passed in rate of 33.9%, again the highest passed in figure since the large losses experienced at the end of August.
The only sector to make positive movement was the cardings, modest price increases pushed the three carding indicators up by an average of 4 cents. This week’s price reductions have left many sellers uncertain, as a result the national offering reduces for the following sale.
Currently there is 34,174 bales rostered for sale nationally.