WOOL’s eastern market indicator (EMI) fell by another 2.1pc when sales resumed on Wednesday, pushing the market down by nearly 5pc since last week, ending 11 weeks of solid wool price gains.
Last week, prices the EMI fell by 2.6pc, described as ‘a reality check’ after the solid gains since the bottom in March.
The EMI lost 17c/kg, to 795c/kg, on Wednesday at sales in Sydney and Melbourne.
Sydney's northern indicator fell by 21c/kg, to 818c/kg and Melbourne’s southern indicator by 15c/kg, to 775c/kg.
Fremantle’s western indicator fell by 26c/kg, to 769c.kg.
Easing demand for worsted suiting products from international consumers has contributed.
On top of this, a stronger $A this week, now at US78c, has offset any advantage from the relatively small national offering of under 42,000 bales this week.
On the back of the higher $A, all microns weakened in Sydney, with the fine end 30 to 40 cents lower, medium range 25 cents cheaper and 21 microns and coarser 15 to 20 cents easier, according to AWEX.
AWEX says there was further weakness also at Wednesday’s Melbourne sale, particularly in the finer microns.
In Fremantle, the market dropped sharply at Wednesday's one-day sale, mirroring the movements in the Eastern markets from last Thursday.
When compared to those of the previous sale last Wednesday, prices are 50 to 80 cents lower at the finer edge while the broader microns are a more modest 15 to 25 cents lower.
Last week, the EMI indicator dropped 22 cents to finish at 812 cents a kilogram, but rose by 3c/kg in US terms, reflecting the higher value of the $A exchange rate.