Weekly Market Report
Mark Dyson, Managing Director
Fine Merino drives market rise
18 January 2019
A larger national wool offering of 51,703 bales and an increase in the Australian Dollar to trade above 72 US cents was enough for the wool market to initially show some consolidation for the Merino types this week.
This resulted in opening sales for the Merino sector easing by 5 – 22c/kg clean, while the finer crossbred categories continued their positive trend from the previous week to increase by 15 – 45c/kg clean.
As selling progressed and the Aussie dollar retreated in value to mid-71 US cents the Merino sector returned to positive territory, with the crossbred types also adding further increases in values to their previous day’s gains.
As orders filled, the final selling day of the three-day sale week saw mixed results as poorer style wools came under pressure pulling the market back, and apart from finer 17 – 18 micron Merino types most wool categories retreated in value by 5 – 20c/kg clean.
By the final hammer, the roller coaster week of sales resulted in the Eastern Market Indicator (EMI) increasing by 13 cents clean to finish at 1923 cents per kilogram clean.
This was largely driven by the fine Merino wool and fine crossbred wool categories which added to their previous week’s levels.
The skirtings and carding wool types remained relatively unchanged for the week, with values finishing near similar to the previous week’s quotes.
Passed in rates were similar to last week, sitting at nearly seven per cent of the offering.
Next week’s national wool offering decreases to an expected 41,103 bales, with Melbourne playing host to 22,502 bales.