Weekly Market Report
Mark Dyson, Managing Director
Australian dollar strengthens
4 March 2016
While the Australian dollar surged to its highest point of 2016 this week, the wool market came under pressure.
As a result, the Eastern Market Indicator (EMI) lost 10 cents per kilogram to rest at 1258c/kg clean.
The strength of the dollar equated to a rise of US1.27C against the greenback, seeing a 9c/kg gain for the EMI in US terms.
A smaller offering of 39,850 bales did little to rally the market, and 7.4 per cent were passed-in.
The trend was similar to last week’s sale, although the losses weren’t as great and in the south generally ranged from 6-16c/kg in the Merino fleeces.
Again, buyers showed a clear preference for better types and that was directed towards a special Tasmanian catalogue offered in Melbourne.
The finer end of the catalogue took a hit of 11-13c/kg, the latter of which was for the 17.5 micron sector which closed at 1498c/kg.
In the medium to broader types, there was a little more variance but the 22 micron range saw the largest movement, shedding 16c/kg to 1354c/kg.
Skirtings looked to rally early on, but then got dragged down by the rest of the market to see a loss of 20c/kg.
Crossbreds showed some promise and the finer types made gains of up to 11c/kg, while the broader types had a tougher run.
Cardings closed 7c/kg lower in the south, resting at 1122c/kg.
Next week the offering is tipped to peak above the 40,000 bale mark again, with 42, 998 bales expected to go under the hammer.