Season 17 – Week 49
Source: Australian Wool Exchange (AWEX)
After four weeks of continued large increases, the Australian Wool Market cooled in Week 49.
This was the smallest offering of the season, with only 26,942 bales available to the trade.
Despite the smaller offering, a softer tone was evident from the outset.
The losses were mainly felt in the finer microns, resulting in 19.0 micron and finer losing between 25 and 50 cents for the sale.
A limited supply of 21.0 and coarser attracted very strong demand, pushing prices higher in this range, generally 5 to 15 cents.
The end result was the Benchmark Eastern Market Indicator (EMI) losing 16 cents from its record set in the previous sale, to close the week at 2,011 cents.
It could be argued that the reduction in price was heavily influenced by currency movement.
This was reflected in the EMI pushing further into record territory when viewed in USD terms.
The EMI (USc) added 14 cents on Wednesday, hitting a new high of 1547 cents.
Despite losing 9 cents on Thursday, the EMI (USc) rose by 6 cents for the week.
The skirtings also suffered corrections, generally 20 to 40 cents, wools carrying less than 4.0 percent vegetable matter least affected.
The crossbred sector followed a similar path of the merinos and experienced decreases.
The most affected were 28.0 to 30.0 micron, dropping by 5 to 15 cents.
Poorly prepared lines lost buyer support, and were hardest hit in the falling market.
A limited selection of cardings attracted strong demand.
Most types and descriptions, sold at levels very close to those achieved at the previous sale, which was reflected in the two carding indicators rising by an average of 2 cents.
Quantities increase in Week 50 as Fremantle returns to the selling program.
Currently, there are 28,956 bales rostered for sale in Sydney, Melbourne and Fremantle.