THE 2013/2014 wool selling season opened last week and all centres experienced a dip in prices.
The biggest falls were seen in WA, with the Western Market Indicator (WMI) slipping 41 cents a kilogram to close the week at 1010c/kg, but this was off the back of a break the week previous and was largely put down to the market playing catch-up.
The Eastern Market Indicator (EMI) fell by 4c/kg to finish at 1007c/kg.
Despite an overall decrease in prices on the previous week, most centres had strong finishes on the final day.
The closing push was promoted by the three week recess.
Overall it was a good start to the season according to Primaries wool manager Tim Chapman.
Mr Chapman said last season closed on a fairly solid note, despite the market losing ground on the 2011/2012 season.
"There is two parts to how it all finished up, on the one hand we are happy that the level was sustained, but on the other we were disappointed that over the last few months of last season the market dropped away," he said.
But Mr Chapman said there still seemed to be a lot of positivity within the industry as far as new markets for wool.
"Australian Wool Innovation quoted that we have 36 new customers using wool now that we didn't have last year," he said.
"So overall there is health in the wool industry."
But the underlying factor of the world economy was hitting the industry hard according to Mr Chapman.
"It is the biggest issue we have got," he said.
"The bottom-line is that the volume of clothing in the streets is not moving fast enough and is causing a bottle neck.
"The better exchange rate theoretically should be helping but I think the bottom line is that we don't have people in the streets spending money."
Australian Council of Wool Exporters and Processors director Peter Morgan said that despite the overall dip in prices, the market last week started on a good note.
"In spite of a larger market the prices were quite encouraging," he said.
"It means we are heading into the break on a positive note, there will be trading and inquiry during the break and if we go into the break on a negative sentiment it is obviously much tougher than going in on a positive sentiment."
Mr Morgan said also the EMI finished the season a little down on the previous three seasons, it was still a solid finish.
"Aside from recent seasons the only other time the EMI averaged above 1000c/kg for the season was in 2003, and at that time the US exchange rate was at 56c," he said.
"So we aren't doing too badly at all.
"To look at it from a distant point of view, while individuals might have some disappointment, it's hard to be too critical on how we closed this year."
