Weekly Market Report
Mark Dyson, Managing Director
Market firm after three-day sale
1 December 2017
The wool market held firm this week on the back a large national offering of almost 52,000 bales over a three-day sale, with the Eastern Market Indicator showing little movement to finish at 1676 cents per kilogram – an increase of seven cents clean.
The second largest offering in as many weeks and the Australian dollar trading at nearly 76 US cents initially saw values retreat somewhat on the first day’s trade out of Melbourne, with the finer micron Merino categories easing 5-9 cents clean and 10–25 cents clean for the crossbred wool categories.
As the selling progressed throughout the week buyer confidence returned to the market, with solid bidding for wools of good type and measurement.
The first day’s losses were soon forgotten as gains of 14–25 cents clean were seen for the 17–22 micron range, with the crossbred categories making up some ground increasing 6–10 cents clean.
The final day’s selling resulted in the Merino categories remaining firm to dearer on the previous day’s quotes and all in all, the wool market finished in a more positive position to the start of the week.
Skirtings and carding wools followed a similar trend to the fleece wool sector, with the lambswool types attracting keen competition to being extreme at times.
The forward contract market continues to attract grower interest for the January-March 2018 period, with solid trading being reported this week.
There is now only two weeks of sales left prior to the annual three-week Christmas recess, with these sale offerings each to be in the vicinity of 50,000 bales.