Weekly Market Report
Mark Dyson, Managing Director
Strong momentum in Week 45
11 May 2018
A further fall in the Australian dollar to trade at mid-74 US cents assisted the wool market to make further gains this week, with the 21 micron indicator breaking through the 2000c/kg clean barrier.
On a week of strong demand the Eastern Market Indicator (EMI) increased by 55 cents to finish at 1891 cents per kilogram clean, with passed in rates averaging below three per cent over the two days of selling.
On a reduced national offering of just over 38,000 bales, by completion of the first day’s trading the Merino 18.5-23.0 micron categories had increased by 38-60c/kg clean.
The strong market confidence flowed into the skirting sector which increased 30-50 cents clean particularly for the lesser fault types, with the better style oddments adding a further 15-20 cents clean.
The better prepared crossbred wools increased by up to 10 cents clean, with the finer categories benefiting most.
The strong momentum continued into the second day’s trade as buyers looked to fill orders, with further gains of 13-30c/kg clean across all Merino categories and on completion of selling, the 17-26 micron types had made increases of 37-88 cents clean for the week.
The broad micron crossbred categories of 30 micron and above were really the only wool category not to receive any major increase, and finished in buyers favour compared to the previous week.
Next week’s national wool offering reduces marginally once again to an expected 37,496 bales across all three selling centres.