There have been big falls in finer wool types off the back of a weakening economic backdrop.
Subscribe now for unlimited access to all our agricultural news
across the nation
or signup to continue reading
And for the ninth consecutive week, the benchmark Eastern Market Indicator (EMI) has failed to lift, last week losing 13 cents per kilogram to land at 1306c/kg, clean.
This is the lowest level the EMI has been in 16 months.
According to industry analysts, poor economic signals coming from China and continued high inflation rates around the globe are weighing down fine wool demand, especially for the 'lower' quality end of the finer offerings.
The latest commodity overview from Rural Bank revealed during August 17-micron wool was down 171c/kg when compared to the closing price before the winter sale break.
In the last two weeks in the north, 17.5-micron and finer fell between 60 and 135c and in the south in the past three weeks, 17-micron wools have fallen 272c or 10.3 per cent.
Independent Commodity Services analyst Andrew Woods said feedback was the fine Merino market was currently made of three sections.
"There are the very best lots, the China type lots that are typically long, with a staple strength around 30 N/ktx, and the 'in-betweens', which have some sort of issue be it colour, cott, or high CVH for example," Mr Woods said.
"Prices for the best lots and China types were reported as stable last week while prices for the 'in-betweens' was highly variable."
He said this type of situation is expected to continue.
ALSO READ:
Yet with the finer microns taking the brunt of the downward pressures of global markets, the medium wool indicators have remained relatively stable to firm.
Movements of medium and broader types between 19 to 22-microns have only ranged from plus 11c to minus 15c across the three selling centres during the last two weeks.
Lower AWTA volumes for 21-micron wool during the past three-months has also helped in a market where there is a lot of interest from Chinese mills in the 19.5 to 21-micron categories.
Crossbred wool has continued its long-term decline finishing at 380c/kg - the lowest 28-micron price in over 20 years placing more pressure on shearing costs for growers.
