Weekly Market Report
Mark Dyson, Managing Director
Market decline halted as EMI surges again
9 February 2018
Bucking the trend of the past three weeks which saw the market steadily fall, Week 32 halted the decline in fine fashion with prices rising across the entire Merino spectrum on all types and descriptions.
With 39,582 bales on offer, the Eastern Market Indicator (EMI) gained 80 cents clean for the week, pushing it back to its record high of 1818 cents per kilogram clean.
This increase is the largest weekly rise since January 2011, mostly attributed to a 70 cent rise on the first day, which was the largest single day rise in seven years.
Wools that were previously heavily discounted, in particular those with high mid-breaks, had the discounts reduced as buyers attempted to secure quantity.
Prices generally rose between 60-120 cents, with some superfine types extreme.
Although the EMI could only equal its record, the Micron Price Guides (MPG) for 17.5-18 micron and 20-21 micron did manage to set new individual highs.
The skirtings also managed to post large gains, generally between 50-100 cents.
Wools finer than 17.5 micron and those carrying less than two per cent of vegetable matter were the most sought after and enjoyed the largest increases.
The crossbreds also experienced a sharp lift with general price rises of 40-80 cents across the board, while the oddment sector managed to rebound strongly this week with prices generally increasing by 80-140 cents, pushing the carding indicators up by an average of over 90 cents.
The recent decline in price has kept some sellers away from the market of late, however this week’s lift seems to have encouraged them back, boosting sale quantities.
Currently, there is just over 43,000 bales rostered for sale nationally next week from the three selling centres, with 23,875 of those being sold from Melbourne.