Weekly Market Report

Mark Dyson, Managing Director

Mark Dyson

EMI bursts through 2000 cent benchmark

The extraordinary rise of the wool market continued this week, as expectations for the Eastern Market Indicator (EMI) to make history and break through the 2000 cents per kilogram clean benchmark were realised.

The EMI did it with ease, gaining 44 cents for the week to finish at 2027 cents per kilogram clean.

As with recent weeks, strong competition was received on the back of a lower national offering of 30,439 bales and the realisation that the Fremantle sale centre will not operate next week.

The Merino micron wool types once again led the way with gains of 36–81 cents clean for 17–23 micron, the 21–23 micron types increasing 61–81 cents for the week.

The very strong demand resulted in minor discounts for off types near overlooked as buyers endeavoured to cover orders and source supply.

The solid market trend flowed onto the skirtings market, with a limited supply of carding wool types also receiving benefit finishing the week out in sellers favour.

The crossbred wool types were somewhat irregular with the finer 24–28 micron categories showing gains of 24–57 cents clean, while the well prepared lots in the 30 micron and broader categories showed marginal gains with poorer types being less in favour.

In a time to remember, it will be interesting to see when the tide will turn as the trade struggles to meet supply for the overseas demand.

Dry seasonal conditions continual to batter many regional areas across Australia, with MLA recently reporting that the national lamb slaughter forecast is expected to increase by two per cent year-on-year and mutton slaughter to rise by four per cent on 2017 levels. This will surely affect the supply and wool cut for the 2018/19 season.

Next week’s national wool sale sees the offering drop below 30,000 bales to 27,270, with 57 per cent of this to be hosted by the Melbourne selling centre.