Weekly Market Report
Mark Dyson, Managing Director
Market can’t maintain huge gains
23 August 2018
This week’s wool market was unable to sustain the exceptionally strong gains that were delivered to growers from the previous week’s sale, with the Eastern Market Indicator dropping by 48 cents to finish the week out at 2068 cents per kilogram clean.
Our dollar lifted marginally against the greenback to trade at mid-73 US cents and despite the national wool volume dropping below 30,000 bales, this was not enough to influence the market as buyers once again became selective in their purchases.
Despite the reduced offering, buyers are facing catalogues which are carrying a high percentage of lower yielding wools which are poor in style and type.
The market generally eased for Merino fleece categories between 60-90 cents clean, with the poorer style types being further discounted as the trade looked to fit these types into export order requirements.
Pieces and bellies carrying low fault assisted the skirtings to hold reasonably well, with these categories being less affected reducing by 30-50c/kg clean.
The crossbred wool types were also less affected by a reduction in values and generally fell 16-25c/kg clean, with the broader than 30 micron types mostly affected.
Carding types eased marginally, as again the lower grade heavier stained types found the running a bit tougher.
Despite the correction in the market, the Merino and fine crossbred wools are still trading above or near the 100 percentile ranking with values better than a fortnight ago post the recess opening.
This, along with the good forward price levels out to the New Year, is an encouraging sign for producers coming into the spring shearing.
Next week sees the national wool offering increase to 39,960 bales, with the Fremantle selling centre back in action.