Weekly Market Report
Mark Dyson, Managing Director
EMI trending up again
3 May 2019
Our wool market resumed in Week 44 after the Easter recess, with quantities increasing as wool accumulated during the break and some 43,053 bales available to the trade.
Despite the larger offering buyer demand wasn’t softened, perhaps because brokers are reporting a sharp decline in shearing activity and a drop in fresh wool being available is predicted (the AWEX Four Week Forecast issued this week indicated that Week 45 and 46 will have less than 35,000 bales and Week 47 less than 31,000 bales nationally).
The main source of buyer interest was the best/good style wools, generally pushing up prices by 15 – 30c/kg and elevating the Eastern Market Indicator (EMI) by 17c/kg for the week to finish at 1,960c/kg.
The EMI has now risen for two sales in a row after its previous long run of losses.
Continuing the trend of recent sales, the crossbreds again recorded healthy gains, with a 40 – 60c/kg rise in 28.0 micron pushing the individual Micron Price Guide (MPG) for 28.0 micron further into record territory in both Sydney and Melbourne.
After tracking downward for the previous six weeks, the Merino cardings returned to positive territory with prices generally increasing by 10 – 30c/kg clean, pushing the three carding indicators up by an average of 15 cents.
As mentioned earlier, the national quantity reduces for next week, with there currently being 33,464 bales rostered for sale in Sydney, Melbourne and Fremantle.