Wool market closes on 1952c

The AWEX Eastern Market Indicator (EMI) lost only 8 cents for the series, closing the week at 1952 cents a kilogram.
The AWEX Eastern Market Indicator (EMI) lost only 8 cents for the series, closing the week at 1952 cents a kilogram.

Season 18 - Week 45

Source: Australian Wool Exchange (AWEX)

After rising for the past two weeks, the Australian wool market has not been able to continue its upward run in week 45.

The national quantity reduced significantly from the previous week, 32,801 bales were available to the trade, 10,252 bales or 23.8 per cent less bales than were available in week 44. Quantities of wool offered in Australia normally declines in May, and this year will be no exception.

The effects of the drought continue to be evident in the selection, pushing both yields and quantities down. Compared to the corresponding sale of the previous season, there has been 204,381 less bales offered, a reduction of 12.1 per cent.

So far this season, 26.4 per cent of the Merino fleece offering has been style 4, this is 15 per cent lower than the same time last season.

Despite the reduced quantity, buyer activity could best be described as cautious and many exporters adopted a "wait and see" approach.

The result was a continually softening market, that by the end of the series meant that prices had been generally reduced by 15 to 40 cents, when compared to the previous week.

Some off-style and inferior types struggled for buyer attention and were up to 50 to 70 cents cheaper.

The AWEX Eastern Market Indicator (EMI) lost only 8 cents for the series, closing the week at 1952 cents a kilogram.

The crossbred wools continue to be the strongest performing sector of the market. Strong buyer demand helped to defy the trend seen in the Merinos, pushing prices higher. The 26.0 through to 28.0 micron wool generally rose by 10 to 15 cents, the better prepared lines enjoying the greatest gains.

The increases pushed the individual Micron Prices Guide (MPG) for 28.0 micron further into record territory in both Melbourne and Sydney. The rise in the crossbred MPGs is the reason behind the EMI only recording an 8 cent loss.

Quantities increase slightly for the following sale, currently there is 33,361 bales on offer in Sydney, Melbourne and Fremantle.

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