Weekly Market Report
Mark Dyson, Managing Director
EMI up 59 cents
22 February 2019
The announcement that China had banned wool exports from South Africa due to a Foot-And-Mouth outbreak resulted in a roller coaster ride for the Australian wool market this week.
It initially had a positive effect on the opening of sales in Melbourne, and with Australia’s dollar holding steady at mid-71 US cents the orders flowed in.
A good selection of better style wools complimented by a New Zealand offering assisted major gains across all micron categories in the order of 40 – 50c/kg clean for the Merino 18 and finer microns types, with stronger gains of 80 – 90c/kg clean in the 19 – 23 micron categories.
The crossbred types didn’t miss out, with the 26 – 32 micron categories increasing 33 – 68c/kg.
Day two saw the northern and western selling centres come on board, playing catch up to the levels set in Melbourne the previous day.
As sales progressed, the momentum steadied with the final day of selling seeing minor corrections in Melbourne of 10 – 44c/kg clean across most Merino micron categories, with stronger declines in Fremantle back 40 – 61c/kg clean by the fall of the last hammer for the week.
Skirtings lifted 30 – 50c/kg clean for the week with the carding types increasing some 20 – 35c/kg clean.
By week’s end, all Merino and crossbred categories still achieved solid gains of 23 – 70c/kg clean, with the benchmark Eastern Market Indicator (EMI) finally finding ground at 2027c/kg – an increase of 59c/kg clean on the previous week.
Next week’s national wool offering increases to an expected 49,738 bales, with the Sydney selling centre hosting a designated Australian superfine sale.