WOOL price volatility in early eastern sales prompted many Western Australian producers to withdraw clips this week to the benefit of those retained in auction catalogues.
AWEX senior market analyst Lionel Plunkett said the Australian wool market continued to perform erratically this week, with upward and downward price fluctuations experienced for the second consecutive week.
“The overall price increases of the previous series encouraged more sellers to the market, pushing the national quantity up to 37,512 bales.
“When the market opened in the eastern centres on the first selling day, it was immediately apparent that buyer sentiment had weakened,” he said.
“The result was a reduction in price across all Merino microns and descriptions.”
Mr Plunkett said the northern and southern Micron Price Guides (MPGs) lost between 17 and 56 cents for the day.
“The losses in the east pushed the AWEX Eastern Market Indicator (EMI) down by 33 cents for the day.
“When the news of these losses reached the west, it prompted many sellers to pull their wool from the market, resulting in 29 percent of the fleece being withdrawn prior to sale,” he said.
“The wool left in the Fremantle sale attracted strong support and as a result recorded minimal price movements, the western MPGs ranged between a 4-cent loss and a 5-cent gain.
“The positive tone evident in the west at the end of the first day, carried into the second, with all three centres recording positive movements,” he said.
Mr Plunkett said the Micron price Guides across the country rose by 23 to 68 cents.
“On the back of these rises the EMI recovered all of the previous day’s losses, adding 34 cents for the day.
“The EMI recorded an overall positive movement for the series, rising by 1 cent, closing the week at 1189 cents,” he said.
“Worth noting, due to the strengthening of the Australian dollar, when viewed in US$ terms, the weekly rise was more substantial.
“The EMI rose by US16 cents for the series, equating to a 1.8pc rise.”
Next week national offering rises, there is currently 40,359 bales available to the trade in the Sydney, Melbourne and Fremantle auction catalogues.
Click here for the latest AWEX Micron Price Guides.