Weekly Market Report

Mark Dyson, Managing Director

Mark Dyson

Currency continues to sway market

The rise and fall of the Australian dollar has continued to influence the wool market, and this week it was not a positive influence.

The Eastern Market Indicator (EMI) fell by 24 cents per kilogram to close at 1287c/kg clean, after the Australian dollar gained almost two cents against the greenback.

In US terms, the EMI gained 6c/kg to rest at 985c/kg.

The overall offering was 39,590 bales nationally with 13.2 per cent passed-in, which had increased by 7.9pc on last week’s sale.

The market opened on Tuesday to an offering of New Zealand fleeces, which saw fairly solid demand for more stylish types but things generally went downhill from there.

The medium to broader types were the hardest hit, seeing losses of more than 40c/kg, with the 21 micron guide closing at 1391/kg.

The losses were not as large in the finer end of the catalogue, but were still up to 30c/kg, seeing the 19 micron guide slip to 1484c/kg.

Skirtings continued the fleece trend, with discounts of 20-40c/kg, while the carding market tread a different path, with small gains and a loss of 1c/kg in the South.

Crossbreds had a tough week, seeing dips of up to 40c/kg.

Next week will see a smaller offering, with an expected 35,553 bales expected to hit the market.