Weekly Market Report
Mark Dyson, Managing Director
Wool market weakens
10 June 2016
A small offering did nothing to help the wool market this week, as the Eastern Market Indicator (EMI) fell 26 cents per kilogram to close at 1270c/kg clean.
Currency played a role in the result, as the dollar gained over two cents against the greenback during the trading period, seeing the EMI actually rise by 9c/kg in US terms.
It was the smallest offering seen in 12 months with no sale in the West, and 27,231 bales put to market, of which 13 per cent were passed-in.
The first day of selling set the tone, with some big falls across the board and that continued on the second day of trading in the South while the North saw a slight reprieve.
Finer types were the biggest hit, seeing discounts of between 31-44c/kg, with the 18 micron price guide dipping 44c/kg to see 1487c/kg.
Medium to broader fleeces also felt the impact, with prices falling by 15-33c/kg.
Low vegetable matter types of less than 1pc were again in high demand, but supply was at its lowest level of the season.
Skirtings were not hit as hard, but were still discounted, while cardings dropped by 18c/kg in the South.
Crossbred fleece, though limited in supply, also saw price decreases of 25-28c/kg.
Next week, Fremantle will resume selling which will see a larger national offering of an estimated 34,711 bales.