The Australian wool market has followed the lead of other global markets this week, recording losses across the board. 43,579 bales were offered nationally, of this total 25.5% was passed in and 6.2% was withdrawn prior to sale, as sellers were either unprepared or unwilling to accept the reduced prices. This season the amount of wool put through auction is still well down, compared to the corresponding sale of the previous season, there has been 126,694 fewer bales offered for sale, a reduction of 10.5%.
This week better style wools, wools carrying less than 1.0% vegetable matter and those possessing favourable additional measurement (AM) results attracted excellent buyer support. As a result of this support, these types were the least affected by the falling market. These wools however, were in limited supply and the lower yielding wools and those with less favourable AM results did not have the same buyer support, continually losing ground as the series progressed, some falling by 50 to 100 cents for the week.
Many of these lesser style wools are not included in the make-up of the individual Micron Price Guides (MPGs), as a result the falls in the MPGs did not reflect reductions in some sectors of the market. Across the country the MPGs fell by 19 to 85 cents. On the back of these losses the AWEX Eastern Market Indicator (EMI) fell by 41 cents for the series, closing at 1,521 cents.
Due to currency movements, when viewed in USD terms, the EMI posted an even larger fall of 52 USc.
Next week’s offering increases as wool that was unable to sold in Week 35, continues to make its way to market. There is currently 50,237 bales on offer in Sydney, Melbourne and Fremantle, with Melbourne selling over three days to accommodate the larger quantity.