Wool's Downward Trend Continues
April 4, 2014 

After suffering its biggest fall in six months last week, the Australian wool market has taken another hit with the Australian Wool Exchange Eastern Market Indicator (EMI) sliding a further 13 cents week-on-week to finish at 993c a kilogram (c/kg) on Thursday.

Last week, the EMI dropped 29c/kg to finish at 1006c/kg - its lowest level since July 2013 when it opened the season at 1001c/kg. This week's result marks the fifth consecutive week of lower prices and the wool market's longest losing streak in 19 months, with the EMI 66c lower year-on-year.

"Here in the United States, wool prices are trending downward but they are not currently showing the downward spiral like they are in Australia," said U.S. Department of Agriculture's Livestock, Poultry and Grain Market News Officer in Charge Randy Hammerstrom. "It appears that prices are 10 percent to 12 percent off from this time a year ago. Even though trading may be good in the United States, when prices in Australia drop at this rate, buyers tend to pull in the reins here as well."

According to Hammerstrom, shearing is running two to three weeks behind because of rain and snow across the country but for the most part, wools are coming off cleaner than they were a year ago. With a number of wool warehouses planning some sizable sales in the next few weeks, he believes there will still be a demand for domestic wool with exporters willing to buy.