Weekly Market Report
Mark Dyson, Managing Director
Indifferent wool market as Aussie dollar drops
29 September 2017
It was a very indifferent climate in the wool market this week on the back of a declining Australian dollar which fell to 78.21 US cents, trading at the lowest level for some time.
The Eastern Market Indicator finished at 1522 cents per kilogram clean, a reduction of three cents clean on the previous week but still a healthy 232 cents per kilogram above the same period last year.
As in recent weeks, there was solid support for best style wools of good tensile strength above 40 n/kt.
An increasing supply of wools expressing high mid-break and tenderness overshadowed the offering, resulting in these types being discounted heavily as exporters struggled to average these wools over their orders.
After an initial fall in the market on the first day’s trade, a degree of confidence returned with some of the recorded losses making ground up as the week progressed.
The Merino fine wool indicators finished the week in the black with the 16.5-18.5 micron ranges increasing by 15-20 cents clean on the previous week, though this was largely for the better style types.
The medium 20-22 micron ranges eased 10-20 cents clean, with the broader crossbred categories of 30 micron plus losing ground by a similar margin.
Skirtings reduced in value by 10-20 cents clean again, with poorer style wools with high vegetable matter content being mostly affected.
Locks and crutchings continued the trend of recent weeks to increase in value by 10-20 cents clean for the week, with a limited selection of lamb’s wool being well supported.
Next week’s national offering consists of 40,587 bales, of which 22,067 will be on offer from the Melbourne selling centre.