Impact of dry conditions evident in market

Impact of dry conditions evident in wool market

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The national wool quantity reduced significantly from the previous week with 32,801 bales available to the trade, which was 10,252 bales or 23.8 per cent less bales than were available in Week 44.

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AFTER rising for the past two weeks, the Australian wool market was not able to continue its upward run last week in Week 45.

The national quantity reduced significantly from the previous week with 32,801 bales available to the trade, which was 10,252 bales or 23.8 per cent less bales than were available in Week 44.

The effects of the drought continue to be evident in the selection, pushing both yields and quantities down.

Compared to the corresponding sale of the previous season, there has been 204,381 less bales offered, a reduction of 12.1pc.

So far this season 26.4pc of the Merino fleece offering has been style 4, this is 15pc lower than the same time last season.

Despite the reduced quantity, buyer activity could best be described as cautious and many exporters adopted a "wait and see" approach.

The result was a continuingly softening market, that by the end of the series meant that prices had been generally reduced by 15-40 cents, when compared to the previous week.

Some off style and inferior types struggled for buyer attention and were up to 50-70c cheaper.

The AWEX Eastern Market Indicator (EMI) lost only 8c for the series, closing the week at 1952c.

The crossbreds continued to be the strongest performing sector of the market.

Strong buyer demand helped to defy the trend seen in the Merinos, pushing prices higher.

Wools 26 micron through to 28 micron generally rose by 10-15c, the better prepared lines enjoyed the greatest gains.

The increases pushed the individual Micron Prices Guide (MPG) for 28 micron further into record territory in both Melbourne and Sydney.

The rise in the crossbred MPGs is the reason behind the EMI only recording an 8c loss.

Quantities increase slightly for this week's, with 33,361 bales roster for sale in Sydney, Melbourne and Fremantle.

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