Weekly Market Report
Mark Dyson, Managing Director
Heavy corrections after mid-year recess
9 August 2019
As sales commenced again after the annual mid-year recess, the Australian wool market suffered large corrections this week.
Concerns over global trade tensions brought about caution from many major buyers, making it difficult for the market to find a firm level and seeing prices heavily discounted.
While the first buying and selling opportunity since July saw the national offering increase to 43,063 bales, it became apparent from the opening lot in the Eastern markets that buyers were not prepared to buy at the levels achieved before the recess.
The Eastern Market Indicator (EMI) fell by 78 cents for the week to close at 1,676 cents per kilogram clean, with the passed in rate of 28.6% the highest in ten years.
Prices opened 50 – 60 cents lower but by the end of the series, the individual Micron Price Guides (MPGs) had generally fallen by 80 – 180 cents.
The oddments were the only sector to record positive movement for the series, with a limited supply attracting very strong competition and pushing prices up by 50 – 70 cents.