Weekly Wool Market Report
Season 17 – Week 37
Source: Australian Wool Exchange (AWEX)
After the downward movement experienced in Week 36 where the Benchmark Eastern Market Indicator (EMI) lost 52 cents, the Australian Wool Market has suffered further corrections in Week 37.
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Quantities decreased slightly, and 42,645 bales were offered to the trade. As is often the case in a falling market, buyers became more selective in their purchases. The result was that small impurities that were overlooked in the rising market suddenly attracted discounts.
Wools with very high mid-breaks (>75 in particular) were also heavily discounted as buyers struggled to average them into their purchases.
Inversely, any lots possessing mid-breaks of less than 40 attracted significant premiums and in some cases sold at levels very close to those achieved at the previous sale.
In general terms 20.0 micron and finer lost 40 to 60 cents, the broader microns in 20.5 and coarser were less affected and posted discounts of 20 to 40 cents. The result was a 27-cent reduction in the EMI, which closed the week at 1751 cents.
The EMI has dropped 83 cents over the previous six selling days, which equates to a 4 percent drop.
After being the only sector not to suffer corrections last week, the crossbreds succumbed to the falling market in this sale.
All types and descriptions across the entire spectrum recorded general losses of between 10 and 20 cents, with the poorly prepared lines suffering the greatest reductions.
The oddments have continued their downward trend, losing ground for the fourth consecutive week.
Prices were generally reduced by 10 to 30 cents, resulting in the three carding indicators falling by an average of 17 cents.
In Week 37, there is another reduction in the national offering.
Currently, there are 38,849 bales on offer in Sydney, Melbourne and Fremantle, nearly 9 percent less than the offering in Week 36.
Source: National Wool Selling Centre, telephone 03 8325 7000
.