Weekly Market Report
Mark Dyson, Managing Director
EMI takes a hit
17 May 2019
The softer tone evident toward the end of last week’s sale has carried forward, resulting in further price corrections in Week 46.
The Eastern Market Indicator (EMI) fell by 59 cents (or a 3.0 per cent drop) to close at 1,893 cents per kilogram, representing the largest weekly fall in the EMI since November last year.
The EMI is now 223 cents below the record it set in August 2018, and 50 cents lower than the corresponding sale of last season.
Prices were reduced from the opening lot of the first selling day and by the end of the sale, prices across all Merino microns had generally fallen by 50 to 80 cents.
As a result of the sharp drop in prices, the National passed in rate was 21.7%, the highest figure since October 2018.
After recording general rises for the past seven weeks, the crossbred sector also suffered some large losses this week.
After reaching record levels over the previous few sales, the individual Micron Price Guide (MPG) for 28.0 micron was the hardest hit, losing 143 cents for the series in the Southern region.
This was a 10.8 per cent reduction and the largest weekly fall in the 28.0 MPG since May 2003.
The national quantity reduces for the following week, and as it currently stands there is only 25,637 bales rostered for sale in Sydney, Melbourne and Fremantle.