After two consecutive weeks of rises the Australian market was unable to continue its upward trajectory this week, instead recording general losses.
The market opened strongly in Melbourne, with very little change recorded from the previous week. The Western region, which did not sell in the previous week, also opened strongly but prices reduced as the sale progressed. The market continued to retract on the second day of selling, so much so that by the end of the week the individual Micron Price Guides (MPGs) in Sydney and Melbourne recorded losses of between 10 and 49 cents.
Many buyers contributed these losses to the inability to average the required 70% washing yield required for many Chinese orders, due to the large amount of lower yielding wools on offer. In contrast to this, the limited number of high yielding/better style wools attracted very strong buyer demand and were the least affected by the falling market.
The AWEX Eastern Market Indicator (EMI) fell by 12 cents for the series to close at 1,171 cents. As opposed to the previous series, due to minimal currency movement, when viewed in USD terms, the EMI fell by a similar amount, the EMI fell by 8 USc to close at 813 cents. The crossbreds recorded positive movements for the week, the crossbred MPGs rose by 5 to 10 cents for the series, the only exception was the 26.0 MPG in the North which was unchanged. The positive movements in the crossbred sector prevented the EMI from falling further than it did. The oddments also recorded upward movements, the three carding indicators rose by an average of 14 cents, again preventing the EMI from a larger fall.
The Fremantle region does not sell again next week, as a result the national quantity reduces again.
There are currently 16,819 bales on offer, with only Sydney and Melbourne in operation.