THE decline in Australia’s auction wool market halted this week as growers held back wool after last week’s price fall.
The Australian Wool Exchange said the national bale offering reduced by 10,577 bales to 44,786 bales.
“This reduction was due in part to the large falls of last week, which discouraged some sellers from the market.
“Four sales into the new season and the total amount offered is tracking well above the previous season, there has been 204,219 bales put through the auction system, an increase of 20,350 bales, 11.1 percent more than the corresponding sale of last year,” AWEX said.
“From the start of the series, the market quickly found a level similar to the previous week, and generally traded within 30 cents of these levels throughout the week.
“This was reflected in the individual Micron Price Guides (MPGs) for merino fleece, which across the country ranged between -16 and +30 cents,” AWEX said.
“These movements combined with minimal movements in the crossbred section (the MPGs ranged from -3 to +5 cents) and the oddments (the three Merino Carding Indicators (MC) fell by an average of just over 4 cents) and general losses in the skirtings of between 10 and 20 cents had the net result of an overall fully firm market.”
AWEX said after falling for the previous four selling series, the EMI finished the week unchanged at 1342v/kg clean.
“The last time the EMI recorded no movement for the series was back in September 2017.
“In an opposite trend to the previous week, a weakening A$ meant when viewed in US$ terms the EMI finished 18 cents lower,” AWEX said.
“As quantities in the west do not warrant a sale next week, the national offering reduces for the following series.”
Currently, there are 40,116 bales on offer, with only Sydney and Melbourne in operation.
Next week (Week 8), Melbourne will host the annual Wool Week, with industry stakeholders attending a series of events.
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