The Australian wool market has continued its downward slide into negative territory in Week 17. A heavily reduced market was evident from the outset, and as the sale progressed buyer confidence slowly eroded, pushing prices continually down. The finer microns were the hardest hit in the falling market, by the end of the series 17.5 micron and finer were selling at levels 100 to 150 cents below those achieved in the previous week. 19.0 micron and coarser did not sustain the same losses and were generally 50 to 75 cents easier.
The Western region did not experience price reductions as large as the Eastern state’s markets, this was mainly because the Fremantle market was already trading at levels below Sydney and Melbourne. The EMI lost a total of 96 cents for the week, closing at 1,874 cents. This was also the largest weekly drop in the EMI since 2003. The large price corrections were met with firm seller resistance.
The national passed in rate was 23.6% for the week, this was the highest passed in rate since February 2014. This was on top of the 6.9% of wool that was withdrawn prior to sale. The skirtings followed a very similar path to the fleece. General losses of between 100 and 150 cents were experienced, wool finer than 17.5 micron most affected. The oddment sector had another week of large losses. Locks, stains and crutchings fell by 100 to 150 cents, pushing the three carding indicators down by an average of 138 cents.
The national quantity increases next week to 40,351 bales selling in Melbourne, Sydney and Fremantle.