AUSTRALIAN wool prices – Merino and crossbred fleece of all microns – fell further at auctions this week, with only oddments holding firm on average.
The Australian Wool Exchange said the market has been unable to prevent its downward slide, recording an overall loss for the fourth consecutive series.
“Unlike in previous weeks where most of the losses were felt in the finer Merino types, this week the falls were experienced across all Merino fleece types and descriptions.
“From the opening lot prices were noticeably lower, then prices proceeded to fall as the week progressed,” AWEX said.
“By the end of the series, the individual Micron Price Guides (MPGs) for Merino fleece had dropped by between 7 and 90 cents, the only exception was the 20 micron MPG in Melbourne which recorded no change.
“These falls combined with losses in the skirting, crossbred and oddment sectors resulted in a 27-cent drop in the AWEX Eastern Market Indicator (EMI), the EMI closed the week at 1279 cents/kg clean.”
AWEX said the last daily rise in the EMI was on the 16th of August, while the last weekly rise in the EMI was back on the 22nd of June.
“The EMI is now at its lowest point since March 2021.”
AWEX said buyer sentiment in the crossbred sector was low, resulting in limited demand and weak bidding on many types.
“The prices on offer were generally 25 to 55 cents lower than those of the previous series.
“In percentage terms, the crossbreds recorded the largest falls for the series,” AWEX said.
AWEX said in the south, the MPGs for 26 micron wools fell 56 cents (-8 percent), the 28 micron wool fell 26 cents (-6.9pc) and the 30 micron MPG fell 31 cents (-9.5pc).”
The oddments were the strongest performing sector, with the average of the three indicators recording no change, AWEX said.
Quantities for next week fall, due in part to the lower prices discouraging some sellers from the market. Currently, there is expected to be 31,994 bales on offer in Fremantle, Melbourne and Sydney. Selling will move to Wednesday and Thursday due to public holidays (Friday in Melbourne and Monday in Fremantle).
Click here to see the latest AWEX Micron Price Guides.
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