Australian Wool Market Closes Season with Price Correction
June 29, 2018
Week 52 hosted the final sale of the 2017-18 season. Fremantle’s return to the market after a one-week recess helped push quantity up to 31,784 bales. Some of the heat left the market this week after the large increases experienced during the previous few sales, and price corrections resulted to finish the year.
The finer microns were the hardest hit in the softer market, resulting in 18.5 micron and finer generally falling by 20 to 40 Australian cents. Nineteen and a half to 20.0 microns were less affected and were 10 to 20 cents easier. A limited offering of 21.0 micron and coarser managed to record increases for the sale, generally 5 to 10 cents. These increases pushed the individual Micron Price Guide for 21.0 micron further into record territory in all three centers.
Worth noting, the western region recorded general increases of between 40 and 80 Australian cents for the series because it did not sell in the previous week, where large gains were recorded in the eastern states markets. The benchmark Eastern Market Indicator dropped 17 Australian cents from its all-time high reached in the previous week, closing at 2,056 cents. Despite the small reduction, the EMI rose 531 cents for the season, an increase of nearly 35 percent, which is largest seasonal increase in the EMI since 2011.
In the 2017-18 season, more than $3.4 billion (in Australian dollars) worth of wool was sold to the trade.
The crossbred sector also lost ground this week – generally between 5 and 20 Australian cents – 30.0 micron and coarser was the least affected. A limited supply of oddments were generally 5 to 10 cents easier. Next week is the first sale of the 2018-19 season, Week 1 is typically one of the larger sales, as sellers wanting to sell into the new financial year enter the market. Currently, there are 43,232 bales rostered for sale.
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