Weekly Market Report
Mark Dyson, Managing Director
Market comes under pressure
15 July 2016
THE wool market felt the pressure from the strengthening Australian dollar this week and the Eastern Market Indicator (EMI) lost nine cents per kilogram to close at 1311c/kg clean.
It brought an end to the market’s solid run of the past four weeks, however as the dollar gained almost a full cent against the greenback, in US terms the EMI closed 5c/kg firmer at 998c/kg.
A bigger offering of 40,935 bales hit the market, with 8.3 per cent passed-in.
Across the board Merino fleeces lost ground, but medium to broader types were hit the hardest.
Finer types generally lost 5-20c/kg, while the medium to broader types were around the 16-24c/kg mark.
The 19.5 micron price guide lost 24c/kg, coming to rest at 1487c/kg in the South.
Despite the losses, skirtings managed to remain firm, while cardings slipped slightly to close up to 5c/kg lower.
It was a mixed bag for the crossbreds, with better support from buyers for the 26-28 micron types which firmed by around 30c/kg.
The broader end of the crossbred catalogue had a tougher run, shedding around 15c/kg.
The market is closed for its annual mid-year recess, with trading to re-commence on August 8.