Weekly Market Report
Mark Dyson, Managing Director
Price gains short-lived
19 October 2018
The solid gains that were received on the wool market last week were only short-lived, as the market retracted this week with the benchmark Eastern Market Indicator (EMI) falling 53c/kg clean to finish at 1970 cents per kilogram clean (and once again falling under 2000c/kg for the second time in three weeks).
The Australian dollar increased marginally trading at low-to-mid 71 US cents, which really could only be attributed in part to the falls in wool values as importers look to pull values back in US dollar terms.
Once again the greatest falls were felt in the finer wool categories, with the 16 – 18 micron types slipping by 80 – 120c/kg clean.
The medium to broader Merino categories did not escape unscathed, falling 40 – 65c/kg, with the crossbred wool categories less affected easing 10 – 25c/kg clean.
The carding wool sector continued the trend of recent weeks with strong falls across locks, crutchings and stains of some 100 – 120c/kg clean, the burry carbonising types coming under most pressure.
The sharp fall in the market resulted in passed in rates reaching higher levels, averaging 19.4 per cent over the week.
Next week’s national wool market offering consists of 38,702 bales, with the Melbourne selling centre hosting 22,627 bales, or 58 per cent, of this total.