Season 18 – Week 37
Source: Australian Wool Exchange (AWEX)
The Australian wool market has continued to track downward in Week 37, recording losses for the third consecutive series.
The national offering reduced, this week 40,785 bales were available to the trade.
When compared year on year, the total amount of bales offered, has fallen by 176,192 bales, a reduction of 12.7 per cent.
The quantity is expected to rise in Week 38, before falling to about 37,000 bales nationally in Weeks 39 and 40.
This week saw the market follow a very similar pattern to the previous series.
A diminishing supply of better style wools, in particular those possessing favourable additional measurement results, attracted excellent support and closed out the week achieving prices only 15 to 20 cents below the levels achieved in the previous week.
However, there was again an ever-increasing supply of lower style/lower yielding types, the national average yield on Merino fleece was only 63.6 per cent dry, the lowest level in more than 10 years.
Buyers continually reduced their basis on these lower yielding wools, as they again struggled to average them into their purchases.
By the end of the series these types were generally 30 to 50 cents cheaper.
It was the large reductions in these wools which was the major factor in the individual Micron Price Guides (MPGs) falling as far as they did.
On the back of these falls the AWEX Eastern Market Indicator (EMI) lost 29 cents, falling back below the 2000 cent threshold, closing the week at 1979 cents.
The lower price levels were met with firm seller resistance, this resulted in a passed in rate of 12.6 per cent, the highest figure since November. The crossbreds also lost ground, 26.0 to 30.0 micron were generally 25 to 40 cents easier.
The national offering increases for the following sale.
Currently, there are 44,137 bales on offer in Sydney, Melbourne and Fremantle.
If you have a query, please contact Elders National Wool Selling Centre on (03) 8325 7000.