Wool Report

The Australian wool market has been unable to halt its continued slide in Week 40. Despite the national offering increasing slightly to 37,454 bales, quantity is still well down when compared to the corresponding sale of last year. There has been 141,265 fewer bales offered this season, a reduction of 9.6%. As mentioned in last week’s commentary the amount of lower yielding wools continues to rise, the increase in these lesser style wools is pushing down the average national yield. In a continuing trend, the prevalence of these types is contributing to the downward pressure on the market. Higher yielding / good style wools continue to be highly sought after, there is not enough of these wools however, to prevent overall reductions in the individual Micron Price Guides (MPGs). The MPGs generally fell by 10 to 20 cents, pushing the AWEX Eastern Market Indicator (EMI) down by 4 cents for the series, which closed the week at 1,943 cents. The EMI has now fallen for six consecutive weeks, this is the longest downward run since September 2012. Back then the EMI lost 150 cents or 19.3%. The losses accrued over the last six weeks of this season have not been as severe, the EMI has lost 84 cents, a reduction of only 4.5%. The crossbred sector has continued to defy the trend of the merinos, recording increases for the third week in a row. Strong demand helped to push prices higher, generally between 10 and 25 cents. It was the increases in the crossbreds, which prevented the EMI from suffering a larger fall than it did. In a positive sign, the Western region (which sold last in the series) sold very strongly to finish the week, and managed overall increases. Quantities increase slightly again for the following week, there are currently 38,712 bales rostered for sale in Sydney, Melbourne and Fremantle.