Season 18 - Week 38
Source: Australian Wool Exchange (AWEX)
The Australian wool market has continued its downward trend, recording overall losses for the fourth consecutive series in week 38.
A continually diminishing supply of good style wool, in particular those with favourable additional measurement results, attracted excellent competition and as a result recorded minimal losses.
However, due to seasonal conditions, a large part of the offering was lower style types, many of which also possessed poor additional measurement results.
Wool with styles six and seven, made up 15.4 per cent of the merino fleece offering, the highest level since June 2010.
Due to the prevalence of these wools, buyers have again struggled to average them into their purchases.
The result was the continued discounting of these types as the series progressed.
By sales end, the prices being achieved on these lower style types was generally 20 to 40 cents below those achieved at the previous week's sale.
It was these price reductions that were the driving force behind the losses recorded in the individual Micron Price Guides (MPGs).
The AWEX Eastern Market Indicator (EMI) fell by 16 cents for the series, to close at 1963 cents.
Worth noting, due to the strengthening of the Australian dollar (The AUD got as high as 71.62 US cents on Thursday, its highest level since February 27), when viewed in US dollar terms the EMI rose by 5 cents.
The skirting market behaved similarly to the fleece, better style lots with less than 3.0 per cent vegetable matter (vm) were keenly sought after and were generally only 20 to 30 cents easier.
Buyers were less keen on the lesser style wools and lots carrying in excess of 5.0 per cent vm, and as a result these types fell by 50 to 80 cents.
The crossbreds defied the trend of the other sectors, managing to record small gains for the series, generally between 10 and 20 cents.
If you have a query, please contact Elders National Wool Selling Centre on (03) 8325 7000.