Weekly Market Report
Mark Dyson, Managing Director
EMI increases by 52 cents
18 May 2018
The wool market continued to break through record levels this week as trade buyers looked to cover orders on a diminishing wool supply.
The Eastern market indicator increased by 52 cents clean to finish at 1943 c/kg or 1462c/kg clean in US dollar terms.
The Australian dollar eased to mid-74 US cents on the first day’s trade which initially assisted the trade with the competition on values, but even by day two with the Aussie dollar firming to back above US 75 cents was not enough to hold back the momentum as the trade looked to secure wool.
As with past weeks the merino wool sector took most of the accolades with day one price increases of 10 – 43 cents clean for the 18.5 – 23 micron categories.
Day two selling resulted in further gains in values with the fine wool types also attracting strong support with increases of 30 – 60 cents clean for all merino fleece categories.
Skirtings lifted up to 40 cents clean for the week for most descriptions with the higher fault types also being well supported.
The finer 24 -26 micron crossbred types lifted 30 -95 cents clean, with marginal gains for the 28 – 30 micron types, the 32 micron and broader categories tending to be in the buyers favour.
Lower fault locks and crutchings types were well sought after in the carding sector which resulted in increases for these types of up to 20 cents clean for the week.
Over the past 4 weeks the 19 micron indicator has now lifted by 125 c/kg clean, with the 21 micron indicator increasing by 172 c/kg clean this resulting in a massive 643c/kg clean rise when compared to the same time last year.
Next week’s national wool offering reduces further to 31,966 bales, with the question having to being asked can this level of pricing trajectory be sustained?