Wool market stumbles, again

EMI falls 30 cents for the week

Wool
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EMI falls 30c for the week as most sectors in the wool market record losses.

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The Australian wool market has taken a step back this week, with nearly every sector of the market recording losses.

The Eastern Market Indicator lost 30 cents for the series, closing the week at 1159 cents, this equated to a 2.5 per cent fall.

The total national offering reduced to 36,332 bales after 7.1 per cent of the selection was withdrawn prior to sale.

According to the AWEX weekly report, compared to the corresponding sale of the previous season, there has been 10,593 fewer bales put through the auction system, a 1.8pc reduction.

AWEX market information manager, Lionel Plunkett said the bulk of the losses were felt on the first day of selling.

"The individual merino Micron Price Guides (MPGs) across the country reduced by between 11 and 52 cents," Mr Plunkett said.

"These losses combined with falls in the other sectors, resulted in a 28c drop in the AWEX Eastern Market Indicator (EMI)."

The second selling day the market steadied, with minimal further price reductions combined with price rises in some MPGs.

The losses were between five and eight cents, whist the increases ranged between two and 26c.

Mainly due to further losses in the skirting and crossbred sectors, the EMI fell again for the day, dropping another two cents.

Due to minimal currency movement this week, the fall in the EMI in US dollar terms was very similar (2.7pc).

Unlike the fleece, the Merino skirtings reduced over both days, generally closing the week at price levels 50 to 60c below those achieved in the previous sale.

The crossbred sector recorded the largest losses (in percentage terms) for the series.

In the south the 28 micron MPG dropped 52 cents (an 8pc fall), 30 micron lost 44 cents (9pc) and 32 micron fell by 20 cents (7pc).

The oddments followed a similar path to the fleece, losses on the first day, followed by minimal positive movement on the second.

Next week national offering rises, there is currently 41,527 bales available to the trade in Melbourne, Fremantle and Sydney (which is a designated Superfine sale).

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