The Australian wool market has continued to track downward this week, with losses felt across all merino microns and descriptions.
After 10.3% of the national offering was withdrawn prior to sale, the total number of bales available to the trade reduced to only 22,094 bales. The drop in prices resulted in a national passed in rate of 25.7%, meaning only 17,018 bales were sold. The total dollar figure of wool sold this series was $21.92 million.
Main buyer focus continued to be on the better style wools. These wools were in limited supply however, as the offering was dominated by lower yielding lesser style wools. The individual merino Micron Price Guides (MPGs) fell by 39 to 89 cents, with the reductions felt across the board. On the back of these losses, the AWEX Eastern Market Indicator dropped by 47 cents, closing the week at 1,225 cents.
Worth noting, due to currency movements, the fall in the EMI in USD terms was not as severe, the EMI only lost 2 USc for the series. The crossbreds also reduced this series but not at the same rate as their merino cousins. The crossbred MPGs dropped by 4 to 13 cents. The MPG for 32.0 micron fell to 271 cents, the lowest figure since AWEX records began (1997/98). The minimal reductions in the crossbred MPGs prevented the EMI from falling further than it did.
Locks, stains and crutchings generally fell by 10 to 40 cents for the series, pushing the three Merino Carding Indicators (MC) down by an average of 24 cents.
Next week’s national offering increases to 26,328 bales. Due to the amount of wool on offer, Sydney and Fremantle only require one day of selling, Fremantle offering Tuesday and Sydney offering Wednesday. This move prevents Melbourne from selling in isolation, which is selling over both days.