Put on your seatbelts as wool's EMI tumbles by 98c

Wool price roller-coaster nosedives by 98 cents as EMI hits 1511c


Wool
WHAT GOES UP: After three weeks of price gains the wool market took a disappointing dip this week with the EMI now sitting at 1511 cents a kg clean.

WHAT GOES UP: After three weeks of price gains the wool market took a disappointing dip this week with the EMI now sitting at 1511 cents a kg clean.

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Market analysts have been warning of price volatility in the wool market and their predictions were proved correct at this week's sales.

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The wool price roller-coaster headed south this week with the Eastern Market Indicator losing 98 cents to finish at 1511 cents a kilogram clean.

The disappointing slide ended a three-week upward spike which encouraged sellers back into the market this week with a national offering of 37,021 bales.

Global economic and trade uncertainty, headed by the US-China trade war, is continuing to weigh heavily on the wool market. China buys more than 70 per cent of the Australian clip.

After the first day of selling this week the individual micron price guides in Sydney and Melbourne had fallen by 57 to 80c.

The EMI fell by 51c although losses weren't as bad over in the west at Fremantle where prices had started to dip at the end of last week.

Things didn't improve during the second selling day with the micron price guides falling by a further 32 to 93c. The EMI fell by another 47c.

Growers reacted to the sharp price drop by refusing to sell their wool with the weekly national pass-in rate hitting 33.9pc.

The pass-in rate in Sydney reached 38.8pc on the final day of selling when 4608 bales were offered. The Northern Price Indicator sank 43c to 1538c.

Half the fleece lines in Sydney were passed-in with 19 micron and broader wools easing by 70c.

The pass-in rate at Melbourne's Thursday sale was 46.8pc on an offering of 6876 bales. The Southern Indicator plunged 51c to 1493c.

Sellers of fleece lines in Melbourne were in no mood to accept the prices on offer, passing-in more than 55pc of the catalogue which limited losses for 18.5 micron wools and finer to 40-50c.

Half the offering of 4026 bales at Freemantle on Thursday was passed-in with the Western Indicator shedding 55c to 1610c.

The only sector to make modest gains during the week were cardings with the three carding indicators up by an average of 4c.

Currently there are 34,174 bales rostered for sale nationally next week but a big chunk of this wool may be withdrawn.

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