Large Bale Offering Lowers Wool Prices
November 4, 2016

Wool prices fell this week with the second largest offering of the season and buyers being more selective in their purchases. Merino wools lost between 11-40 cents this week and crossbred fleece prices fell by 22-59 cents.

After recently hitting a 16-month high, the benchmark Eastern Market Indicator retreated, falling 28 cents for the week to finish at AU1303 cents. The EMI in U.S. dollars closed at US998 cents, down US18 cents, with the Australian to U.S. dollar exchange rate up 0.29 cents to US72.28.

When compared to prices this time last year, the AU1303 cents is 69 cents higher than in 2015 when it was AU1234 cents. In U.S. dollars, wool prices are 115 cents higher in 2016, up from US883 cents in 2015 to US998 cents in 2016.

Generally, 19.5 micron and coarser wools were 30-40 cents less, while 19.0 micron and finer wools were 20-30 cents down. Crossbreds followed the lead of the fleece market with all types and descriptions deteriorating as the week progressed, closing the week generally 20-60 cents below levels achieved at the previous sale, with 26.0 micron the hardest hit losing 60 cents for the week.

Australian Wool Innovation's weekly report said the market was not in distress, but the extra bales this week and the rostered volume to sell in the coming weeks released the pressure valve on local and overseas buyers. AWI said the wool supply situation remains cloudy as the offered quantities at the auctions are up 3.3 percent year-on-year while tested quantities are down 3.6 percent.