The Australian wool market has continued to deteriorate this week, as prices continued to fall across the country. 11.8% of the offering was withdrawn prior to sale, bringing the national quantity down to 25,338 bales. Despite the reduced offering, buyer demand waned as the sale progressed, this resulted in continual price reductions.
Good style wools and those with good additional measurement results, were still in high demand and these wools were the least affected by the falling market. The large numbers of lesser style wools and those with poor additional measurement results, did not receive the same support however, pushing continually prices down.
By the end of the series the individual Micron Price Guides (MPGs) across the country fell by 21 to 87 cents. Due to these losses, the AWEX Eastern Market Indicator (EMI) lost 55 cents for the series, closing the week at 1,170 cents. The EMI is now at its lowest point since 2015. The EMI when viewed in USD terms, dropped 48 cents, falling to 753 USC, this is the lowest the EMI has been in USD terms in nearly 10 years.
Although the market has been in decline over the previous few months, a positive point to note, has been the resilience of the Australian wool industry as a whole. Since shutdowns and restrictions were first enforced in Australia in Week 38, sales across the country have continued under adverse conditions, with all industry stakeholders working together to ensure that wool auctions continue. During this time, over 250 million dollars’ worth of wool has been transferred from Australian growers to overseas exporters. Next week’s national offering increases slightly to 25,660 bales.
Due to limited quantities Sydney and Fremantle both will have one-day sales, Sydney selling Tuesday and Fremantle selling Wednesday, this is a move designed to avoid Melbourne selling in isolation.