Weekly Market Report
Mark Dyson, Managing Director
Wool market dips despite falling Aussie dollar
7 April 2017
A fall in the Australian dollar to mid-75 US cents was not enough to stifle the decline in values for Merino wool types this week, with the Eastern Market Indicator finishing at 1459 cents per kilogram, a fall of 43 cents on the previous week.
The sudden decline in values resulted in higher pass in rates of 12–25 per cent on the national offering of just under 50,000 bales, as sellers adjusted to the reduced market levels.
Opening values on the first day’s selling for all of the Merino micron categories decreased from 30–98c/kg, with the 16-19 micron range the greatest affected, and the 20–23 micron range falling 30–60c/kg.
XB wools of 26-30 micron traded at similar levels to last week, though as in recent times some discounting was again seen for poorly skirted lots showing lack of preparation.
Best style Merino wools bucked the trend to find better trade support on the second day’s selling increasing 10-20c/kg, while the poorer style wools still felt the heat retreating a further 30-40c/kg by week’s end. Carding wools tendered cheaper for the week, easing up to 20c/kg.
Next week sees a slightly reduced national wool offering of 46,224 bales, down from this week’s figure of 49,389 bales.