Australian Market Slips in Week 44 Sales
May 4, 2018
The Australian Wool market recorded solid gains in the Week 43 sale despite the fact that a softer tone was evident toward the end of the week. The weaker buyer sentiment carried forward into Week 44 and – combined with detrimental currency movement – contributed to pushing the market into negative territory.
The selection again consisted of many lower yielding, poorer style wools. These wools continued to be discounted as buyers again struggled to average them into their purchases. The largest price reductions were felt in the Northern Region, which posted average falls of 15 to 25 Australian cents, compared to small positive and negative movements in the Southern Region. The overall result, was a 10-cent fall in the Benchmark Eastern Market Indicator, which closed the week at 1,836 Australian cents.
Interestingly, in a reverse of what transpired in the previous week, the tone turned positive by the end of the sale. So much so, that the Western Region recorded gains of 15 to 30 Australian cents for the day, pushing the Western Indicator up by a healthy 13 cents on Thursday.
The skirting market had a steady selling week. Not much movement was recorded, but there was strong buyer interest in wools carrying less than 3.0 percent vegetable matter and those possessing excellent additional measurement results. These lots sold at levels above those achieved at the previous sale. After being the best performing sector in recent weeks, the crossbreds recorded losses for the first time in five weeks. The broadest microns were hardest hit with 30.0 micron dropping by 35 cents and 32.0 micron falling 10 to 20 cents. There were minimal movements in the oddments, the exception being in the Western Region. The corrections felt there brought prices back into alignment with the Eastern markets.
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