The Australian wool market has continued its rollercoaster ride, after rising for two consecutive weeks, this series the market returned to moderate falls. Selling last on the final day of the previous series, the Fremantle region recorded losses, as a noticeably softer tone became evident.
This softer tone continued into this week, resulting in price reductions from the opening hammer in the Eastern markets.
The medium microns were the hardest hit, by day’s end the individual Micron Price Guides (MPGs) for 19.0 micron and coarser fell by 28 to 45 cents across all three centres. On the back of these losses the AWEX Eastern Market Indicator (EMI) fell by 24 cents for the day. The market continued to track downward on the second day of selling. The individual MPGs generally fell by a further 12 to 17 cents in the South and 20 to 50 cents in the North, pushing the EMI down by another 15 cents. The EMI lost a total of 39 cents for the week, closing at 1,555 cents.
Worth noting, in an inverse pattern to the previous sale, the Fremantle region selling last, managed small price increases for the final day, generally between 5 and 10 cents, setting a positive tone for the following week. The price reductions have again been met with seller resistance.
The national passed in rate was 17.6%, an increase of 10.8% when compared to the previous series. The crossbred sector also lost ground this series. The lack of buyer support for the poorly prepared lines, contributed to the MPGs for 26.0 through to 30.0 micron falling by 27 to 49 cents.
The three Merino Carding (MC) indicators fell by an average of 29 cents. These losses were mainly driven the 40 to 50 cent reduction in the price of locks.
Next week’s national offering is 38,497 bales with selling in Sydney, Melbourne and Fremantle.