Weekly Market Report
Mark Dyson, Managing Director
Market losses arrested
2 November 2018
The dramatic reduction in wool values of last week were somewhat subdued this week with the Eastern Market Indicator easing by 20c/kg to finish at 1854 cents per kilogram clean.
The Australian dollar initially dipped in value to trade below US 71 cents on the first day’s selling which helped steady the ship, but increased as the week progressed to finish at US 71.4 cents.
Following the trend of the previous week, buyers were selective with purchases as the better measured wools attracted buyer interest with off-type wools being further discounted representing the bulk of the decline in the fleece wool market.
The 16 – 23 micron Merino categories eased 20 – 40c/kg for the week, while finer wool skirtings followed the reductions of the fleece categories with the medium to broad types remaining relatively firm on last week’s quotes.
The carding wool types eased 30 – 50c/kg clean, which was largely contained to the locks and crutching categories.
Crossbred wool types showed some stability on the first day’s trade to increase 10 -15c/kg, but this waned by week’s end with most types finishing at close to the values of the previous week.
Passed in rates remained at higher levels of 16.7 per cent for the week, with some grower resistance of re-offered wools from recent sales.
Next week’s wool offering consists of a lower 35,696 bales, with the Melbourne selling centre hosting just under 20,000 bales of this total.