Weekly Market Report
Mark Dyson, Managing Director
Cautious market in Week 12
21 September 2018
The wool market opened on a cautious note this week, as the much reported tariff terms of trade between the US and China saw the US dollar come under pressure against other world currencies.
This in part resulted in the Australian dollar trading at US71 cents early in the week, increasing to 72.6 cents by week’s end.
As a result, wool exporters and buyers became cautious with their purchases leading to the Eastern Market Indicator falling 13c/kg clean on the first day’s trade followed by a further drop of 14c/kg yesterday, finishing at 2067c/kg for the week.
Most Merino micron categories traded cheaper by 30 – 56c/kg clean, with the finer microns feeling the heat on the last day’s trade easing 40 – 56c/kg clean.
As is typical on a declining market, lesser style and poorer measured wools with high mid-break felt the most price pressure and were heavily discounted against better measuring types.
Skirtings expressing greater than five per cent fault retreated in value similarly to the fleece categories, with low fault types being less affected.
Finer micron crossbred categories tendered to ease 15 – 25c/kg, with broader micron types near unchanged on the previous week.
Carding wool types traded irregularly easing 10 – 20c/kg clean for the week, with a limited supply of lambswool being well supported.
Next week’s national offering consists of 34,844 bales, while also being a designated superfine sale in the north.