The Australian wool market has continued to retract this week, with general overall losses recorded across the country.
The national offering was only 24,874 bales, in Sydney the weekly offering was 4,696 bales, this was the lowest weekly offering in North since AWEX records began (1997/98). Overall numbers continue to be well down on the previous season, when compared to the same time last year, there has been 152,758 fewer bales put through the auction system, this is a fall of 10.9%.
The smaller offering helped to increase buyer demand, although main buyer focus was on the better style wools and those with favourable additional measurement results. These better style wools recorded minimal movements, however the large selection of lesser style wools and those with poor additional measurement results were not as well supported, losing ground as the sale progressed. The losses in these types was the impetus behind the reductions in the individual Micron Price Guides (MPGs) which generally fell across the country by 2 to 50 cents. The only exceptions were the finest MPGs in each centre, which record modest upward movements.
The crossbreds also recorded overall losses, the MPGs for 26.0 to 28.0 micron lost between 13 and 34 cents, these falls helping to push the AWEX Eastern Market Indicator (EMI) EMI down.
The EMI lost 20 cents for the series, closing the week at 1,272 cents. Due to currency movements, when viewed in USD terms, the fall in the EMI was marginally higher, a 26 USC reduction. When compared to the corresponding sale of the previous season the EMI has fallen by 671 cents, a reduction of 34.5%.
Next week’s national offering increases slightly, there is currently 25,554 bales on offer. Due to reduced quantity Sydney only requires a one-day sale, selling on Wednesday.
Melbourne and Fremantle will sell on Tuesday and Wednesday.