The Australian wool market has continued to track downward, recording losses for the second consecutive week. The national offering decreased slightly to 37,804 bales, the national offering is still well down on the previous season. Compared to the corresponding sale of the 2018/19 season there have been 77,033 fewer bales put through the auction system, a reduction of 11.2%.
From the opening lot in the Eastern state’s markets, it was immediately apparent that the market was continuing to retract. By the end of the first selling day, the individual Micron Price Guides (MPGs) across the country fell by 1 to 29 cents. The only MPG to not lose ground was the 21 micron MPG in Sydney which recorded no change. On the back of these losses the AWEX Eastern Market Indicator (EMI) fell by 16 cents for the day.
The second day the market continued to fall. The MPGs for 18.0 micron and coarser in Sydney and Melbourne dropped by a further 10 to 29 cents, pushing the EMI down by another 9 cents. The EMI lost a total of 25 cents for the series, closing the week at 1,530 cents. The Western region indicator recorded a 4 cent increases for the day, mainly due to 5 to 15 cent increases in wool 20.5 micron and coarser.
These increases helped the Fremantle 21 MPG to become the only quote broader than 18.0 micron to record positive movement. The lower prices being achieved this year, combined with the higher passed in rates has meant the national turnover is well down on the corresponding sale of the previous season. After 22 weeks $895 million (AUD) of wool has been sold this season, compared to $1.4 billion (AUD) at the same time last season.
The national quantity increases to 41,274 bales for the following week, with selling in Sydney, Melbourne and Fremantle.