Weekly Market Report
Mark Dyson, Managing Director
Market hits back despite postponement
31 August 2018
Despite the postponement of Thursday’s sale due to a large and well-publicised warehouse fire around the Melbourne auction facility, the wool market was able to recover some of last week’s losses as the Eastern Market Indicator lifted 22 cents to finish at 2,090 cents per kilogram clean.
The postponement of Thursday’s sale resulted in one of only three Friday sales in the history of AWEX (since 1995), and the first rescheduled sale since the 9/11 terrorist attacks in 2001.
The week’s trading saw the market increase progressively over the sale, resulting in rises of 10 to 50 cents for Merino types.
Skirtings similarly benefitted from the increases and were in high demand, particularly the well-classed better types exhibiting low VM and good length.
This resulted in rises of 20 to 30 cents across all microns and descriptions on the second day of selling.
The smallest Crossbred catalogue for the season saw prices firm by around 10 cents over the three days, while Merino Carding types complimented recent gains with further rises of 40 to 60 cents, pushing all three carding indicators into record territory and beating the previous benchmark set in January.
Recent reports suggest that carding processors are struggling to find sufficient wool to keep mills active.
Next week forecasts an expected national offering of 39,293 bales in the three selling centres, with Melbourne to host 21,466 of those.