Weekly Market Report
Mark Dyson, Managing Director
Wool Market Rebounds
31 May 2019
On the back of strong buyer sentiment, the Australian wool market rebounded in week 48 after three weeks of successive losses.
A small offering of 28,273 bales combined with the strong demand helped to push Merino sector prices 40 – 80 cents higher, as the Eastern Market Indicator (EMI) added 54 cents for the series to close at 1,887 cents per kilogram clean.
With last week’s passed in rate peaking at 28.2%, the price rises helped to reduce the passed in rate to 8.5% for this series.
The skirtings followed the lead of the fleece recording increases, generally between 40 – 60 cents.
And after the large losses experienced at the previous sale, the crossbred sector also managed to bounce back, with the entire crossbred range generally increasing by 40 – 60 cents.
Main buyer focus was on the better prepared lines, with these wools enjoying the largest increases.
The oddments also recorded strong positive movement, with locks in particular coming under intense pressure, as multiple exporters competed on a limited quantity, pushing prices up by 30 – 40 cents.
With the Fremantle region holding a one-week recess in week 49 leaving only Sydney and Melbourne in operation, the national quantity reduces to 23,619. If the price rises do not bring more sellers to the market, this will be the smallest national offering in over two years.