Weekly Market Report
Mark Dyson, Managing Director
Further price falls in Week 7
16 August 2019
After the large losses experienced last week, the Australian wool market has taken a further hit in Week 7.
The suspension of wool auctions in South Africa might have reduced the overall global supply but did little to bolster demand here in Australia, as the Eastern Market Indicator (EMI) lost a total of 163 cents to close the week at 1513 cents per kilogram clean.
The market opened with prices generally 100 cents below those from Week 6, and the lack of buyer confidence saw prices deteriorate further as the series progressed.
By the end of the first day, prices had generally fallen by 110 – 140 cents as the EMI fell by 112 cents on the back of the losses.
The weakness continued on day two with the market unable to find a solid level, as buyers continued to lower their basis as the sale progressed.
The market downturn was met with very firm seller resistance, with 16.7 per cent of wool withdrawn prior to sale followed by a passed in rate of 35.8 per cent – the highest figure since 2003.
The Western region has a one-week recess next week, with only Sydney and Melbourne in operation as the national offering reduces to 33,696 bales.