Wool market continues erratic behaviour

Wool market continues erratic behaviour, but hold firm in the end

Wool
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Wool market levels out after another erratic week of selling.

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Although the Australian wool market only made an upward movement of one cent, it was still full of erratic behaviour, plummeting sharply in Melbourne and Sydney on Tuesday before it hit more positive territory the following day.

In the end the EMI was steady, closing the week at 1189c/kg clean, 1c higher than last week.

According to the AWEX market report, the overall price increases of the previous series encouraged more sellers to the market, pushing the national quantity up to 37,512 bales.

"When the market opened in the Eastern centres on the first selling day, it was immediately apparent that buyer sentiment had weakened," AWEX market information manager Lionel Plunkett said.

"The result was a reduction in price across all Merino microns and descriptions.

"The northern and southern Micron Price Guides (MPGs) lost between 17 and 56 cents for the day."

The losses in the east pushed the AWEX Eastern Market Indicator (EMI) down by 33 cents for the day.

The news of these losses reached the west, prompting many sellers to pull their wool from the market, resulting in 29pc of the fleece being withdrawn prior to sale.

But the wool left in the Fremantle sale attracted strong support and as a result recorded minimal price movements, the Western MPGs ranged between a 4c loss and a 5c gain.

The positive tone evident in the west at the end of the first day carried into the second, with all three centres recording positive movements.

The MPGs across the country rose by 23 to 68 cents. On the back of these rises the EMI recovered all of the previous day's losses, adding 34c for the day.

Crossbred types were generally cheaper except for 32 MPG which posted a 15c lift in Melbourne.

Cardings rose in Melbourne by 7 cents but gave up 33 and 27 cents in Sydney and Fremantle respectively.

When viewed in USD terms, the weekly rise was more substantial. The EMI rose by 16 US cents for the series, this equated to a 1.8pc rise.

Next week national offering rises, there is currently 40,359 bales

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