Weekly Market Report
Mark Dyson, Managing Director
Crossbreds hold amid market falls
30 August 2019
The Australian wool market has continued its sharp decline again in Week 9, with the Eastern Market Indicator (EMI) losing 122 cents for the week to close at 1,375 cents per kilogram clean.
Of the 26,420 bales offered (down from the originally rostered figure of 33,046 bales after 18 per cent was withdrawn prior to sale), some 34.9% failed to reach seller reserve.
Due to the rapid downturn, exporters have been finding it very difficult to trade and buyer confidence has been severely dented.
With the market unable to find a solid level, prices were consistently reduced as the week progressed generally pushing the Micron Price Guides (MPGs) down between 100 – 170 cents, with the 18.5 micron and finer the least affected as buyers looked to secure finer wools.
The crossbred sector, although unable to record gains, was the best performing sector in Week 9 posting general losses of only 5 – 25 cents and preventing the EMI from falling even further.
The cardings also suffered large losses, with Sydney and Melbourne losing 90 – 140 cents and Fremantle losing over 200 cents coming back from a one-week break.
Due to the current uncertainty in the market more sellers are adopting a “wait and see” approach, with next week’s national offering currently sitting at 29,061 bales with all three centres in operation.