Wool market wavers before stabilising

Small movement in EMI for series, losing just six cents

Sheep
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EMI sees little change losing just six cents for the week.

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The Australian wool market wavered again before adjusting to finish just six cents off the level set last week.

The AWEX eastern market indicator finished at 1144 cents per kilogram, clean, a reduction of only 0.5 per cent.

Yet when viewed in US dollar terms though, due to the further strengthening of the Australian dollar, the loss was even smaller, a US2c fall or a 0.2pc drop.

Year on year, the EMI is sitting 348c below, or 23.3pc.

AWEX market information manager, Lionel Plunkett, said it was Merino fleeces that fluctuated under a very similar offering to the previous week.

"Available to trade this week was 36,507 bales, only 28 fewer bales than last week," Mr Plunkett said.

"The first day of selling the individual micron price guides (MPGs) across the country fell by between one and 44 cents.

"The only exception was the 18-micron MPG in the west which managed a one cent increase."

"The EMI dropped by 17c for the day, but in the final hour of selling in the west there were signs of improvement, improving buyer confidence for the second day."

This increased buyer sentiment did in fact carry into the second day, pushing prices higher.

The MPGs across all microns in all centres, recorded positive movements of between two and 48 cents helping to push the EMI up by 11c for the day.

According to the AWEX report the crossbred sector again did not perform as well as the Merinos.

Substantial losses in the 26- micron MPG in the North (-45 cents a 6pc fall) and the 32-micron MPG in the South (-22 cents an 8pc fall), were a contributing factor to the overall drop of the EMI.

Mr Plunkett said after the relaxing of some COVID restrictions this week, daily auction room lot limits have reverted to pre-COVID levels.

"This has meant that more wool can be offered over each day, as a result the national offering for the following sale has increased," he said.

In the second last sale before the annual Christmas recess, there is currently 41,827 bales on offer nationally.

Year-on-year the offering has decreased by 13,527 bales, equivalent to just 2.1pc.

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