Australian Wool Market Falls for Fourth Consecutive Week
November 9 ,2018

The Australian wool market continued to track steeply downward in Week 19. There were 32,189 bales on offer to the trade, meaning the national offering is now down 15.2 percent compared to the previous season. It was apparent when the sale opened this week that there was a distinct lack of buyer confidence.

Good style wool – with favorable additional measurement results – attracted spirited bidding and was not too heavily discounted. However, inferior style wool – wool carrying faults and wool with less favorable additional measurement results – was continually discounted as the sale progressed. By the end of the series, the Micron Price Guides had been reduced by 70 to 160 Australian cents.

The fall in prices pushed the AWEX Eastern Market Indicator down by 78 cents for the week, to close at 1,776 Australian cents. The EMI has now fallen for four consecutive weeks, losing a total of 247 cents during this period. The EMI is now 340 cents away from its August peak of 2,116 Australian cents.

As in previous weeks, the fall in price was met with firm seller resistance. There was 20.9 percent passed in nationally, on top of the 8.4 percent of wool that was withdrawn prior to sale, this meant the clearance rate for the week was only 70.7 percent.

The crossbreds also fell this week, but not to the same extent as their Merino cousins. Prices were generally discounted by 30 to 90 Australian cents, 26.0 micron and finer most affected. The oddment sector continued its dramatic fall. Prices for locks, stains and crutchings were generally reduced by a further 30 to 90 cents. This pushed the three carding indicators down by an average of 63 Australian cents.

Source: AWEX