No bales changed hands on Wooltrade as the Australian wool market last week had its largest fall since early March.
“The AWEX Eastern Market Indicator on Wednesday fell 22c cents to finish the day at 1248 cents.
“On Thursday the market fell a further 7 cents to rest at 1241c/kg to close the week off,” Mr Rookyard said
He said the more steady price drop on Thursday might signal the market is close to a bottom and at levels to suit the overseas mills.
“Historically, the market is 111 cents higher than this point last year.
“With a rapid drop, and thus high pass in rates at the physical auctions, led to minimal buyer enquiry for online wool, as auction supplies exceeded demand.”
Mr Rookyard said looking forward, there are 47,000 bales on offer this week across all three selling centres — Sydney, Melbourne and Fremantle.
“The quick and sudden market fall should lead to the market finding a position quicker, rather than small dips each week.
“The US$ to A$ exchange rate will also continue to play a role in market forces, with the current rate already dropping,” he said.
“This should help stabilize the market.”
Click here for the latest Wooltrade Top Prices Summary.