AWEX senior market analyst Lionel Plunkett said the impending three-week recess failed to stimulate the wool market’s first sale for the 2015/16 wool selling season.
Sellers reacted to the lack of demand at June prices by passing in 10.5pc of the 47,357 bales offered.
This was despite Australian wool being much cheaper in US dollars, with the EMI in US dollars falling 37 cents to US941c/kg as the $A-US exchange rate fell 0.96 cents to US76.48 cents.
“A technical correction is typically defined as movement of 10pc or more; criteria which the EMI has now met.
“Whilst it has been a sharp reversal over the past month, this week did see some favourable signs,” Mr Plunkett said.
“The finer microns are increasingly finding good competition for stylish/40nkt types and are being rewarded with more stable and consistent prices.
“At the other end of the scale, the broader microns (22/23) are also building support and were unchanged on the last day, and only marginally cheaper for the week.”
Merino wool prices 20-40 cents lower
But Mr Plunkett said prices were generally 20 to 40 cents lower for Merino types.
“The trend lower did slow as the sale progressed with Thursday recording more moderate losses of 5 to 10 cents.”
Merino skirtings were punished during the sale, particularly the finer microns which lost at least 70 cents, he said.
“The broader microns showed some restraint and were only 40 cents cheaper.
“However, the price curve is now fairly flat with little premium being paid for micron.”
Crossbred wools lose 30 cents
Crossbreds followed the Merino market lower, losing 30 cents for the week, Mr Plunkett said.
“The 25/26 range came under the most pressure, falling 50 cents in Melbourne.”
He said until this week, Merino Carding types have remained somewhat protected by the overall weak sentiment. However, this week they followed the other sectors lower and prices were up to 60 cents lower.
The Northern MC indicator recorded its largest weekly fall in four years, he said.