Weekly Market Report
Mark Dyson, Managing Director
Wool market stability
7 December 2018
The wool market held reasonably stable for the Merino wool categories this week, somewhat assisted by a slip in the Australian Dollar to trade below US 73 cents.
The benchmark Eastern Market Indicator (EMI) declined 11 cents for the week, finishing at 1849 cents per kilogram clean.
While the wool market opened on a slightly easing note, the greatest falls were seen in the fine crossbred wool types which lost between 40 – 110c/kg clean, with general losses of 5 – 15c/kg clean for the Merino categories by completion of the first day’s trade.
The majority of the reductions received in the Merino types tendered to be associated with lesser-measured and low-yielding wool types, with better style types maintaining the levels of last week.
Any poorly prepared crossbred types once again came under scrutiny, which added further compromise to the decline in values.
The second day’s selling resulted in a return of buyer confidence for the Merino categories, with gains of 5 – 20c/kg clean leaving most Merino micron types trading at similar to slightly better to last week’s market close.
Further reductions were received in the 28 – 32 micron types, resulting in all crossbred micron categories finishing in the red for the week.
Skirtings maintained the trend of last week with low fault, good length types trading solidly, while carding wool types finished marginally cheaper for the week.
Next week’s final wool market for the year sees an increase in the national offering to an expected 48,777 bales before heading into the annual three-week Christmas selling recess.
It’s interesting that with the first six months of the wool selling season nearly behind us, industry figures for first-hand offered wool bales at auction indicate a reduction of nearly 20 per cent below the levels of this time last year.