Wool prices continue to slide

There were 32,189 bales on offer to the trade, meaning the national offering is now down 15.2 per cent compared to the previous season.
There were 32,189 bales on offer to the trade, meaning the national offering is now down 15.2 per cent compared to the previous season.

Elders

Season 18 – Week 19

Source: Australian Wool Exchange (AWEX)

The Australian wool market has continued to track steeply downward in Week 19.

There were 32,189 bales on offer to the trade, meaning the national offering is now down 15.2 per cent compared to the previous season.

When the sale opened, it was immediately apparent that there was a distinct lack of buyer confidence.

Good style wool, with favourable additional measurement results, were attracting spirited bidding and as a result were not too heavily discounted.

However, inferior style wool, wool carrying faults and wool with less favourable additional measurement results were continually discounted as the sale progressed.

By the end of the series the Micron Price Guides (MPG) had been reduced by 70 to 160 cents.

The fall in prices pushed the AWEX Eastern Market Indicator (EMI) down by 78 cents for the week, to close at 1,776 cents. The EMI has now fallen for four consecutive weeks, losing a total of 247 cents over this period.

The EMI is now 340 cents away from its August peak of 2,116 cents.

As in previous weeks, the fall in price has been met with firm seller resistance. There was 20.9 per cent passed in nationally, on top of the 8.4 per cent of wool that was withdrawn prior to sale, this meant the clearance rate for the week was only 70.7 per cent.

The crossbreds also fell this week, but not to the same extent as their merino cousins.

Prices were generally discounted by 30 to 90 cents, 26.0 micron and finer most affected.

The oddment sector has continued its dramatic fall. Prices for locks, stains and crutchings were generally reduced by a further 30 to 90 cents.

This pushed the three carding indicators down by an average of 63 cents.

The offering in Week 20 is larger than was available this week, currently there is 39,883 bales on offer in Sydney, Melbourne and Fremantle. 

If you have a query, contact Elders National Wool Selling Centre on 03 8325 7000.

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