Australian Wool Market Down Four of the Past Five Weeks
October 19, 2018
After the healthy gains experienced at the previous sale, the upward trend of the Australian wool market was short lived, as sharp corrections were felt across the board in Week 16.
This week’s sale included 36,084 bales offered to the trade, meaning year-to-date the national offering is down 13.3 percent compared to the same time last season. Prices generally fell by 50 to 120 Australian cents.
Wool 19.0 micron and finer suffered the largest falls, in particular any wool with poor additional measurements, due to the oversupply of these types. The falls resulted in the AWEX Eastern Market Indicator falling by 53 cents for the series, closing the week at 1,970 Australian cents. The EMI has now fallen four out the previous five weeks, losing a total of 124 Australian cents during that period. The EMI is now 146 cents away from the record of 2,116 Australian cents it achieved in August of this year.
Currency fluctuations contributed to some of the market movement, which was reflected in the EMI losing just 25 cents when viewed in U.S. dollar terms. On a positive note, the total amount of wool sold went past one billion dollars this week – the quickest this figure was reached since AWEX started compiling this information in 1995. This was one sale faster than the previous season, where the billion-dollar mark was achieved in Week 17, and five sales quicker than the 2016-17 season when it took 21 weeks to reach the same milestone.
Skirtings tracked a similar path to the fleece with general losses of 80 to 100 Australian cents, and 18.5 micron and finer were most affected. The oddment sector suffered large losses in this sale. Locks, stains and crutchings were generally reduced by 80 to 120 cents, pushing the three carding indicators down by an average of just more than 100 Australian cents. The crossbreds were the best performing sector, losing only 10 to 30 cents.
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