Market falls after 5 weeks of gains

The EMI has fallen after 5 consecutive weeks of strengthening, falling down 14ȼ/kg to 1420ȼ/kg.  The Aussie dollar was 1 cent higher against the USD, lifting to 0.7099 US, resulting in a slight lift in the EMI in US terms to 1008ȼ/kg.

All medium to fine merino microns fell between 1 to 43 cents, except for the 19MPG in Sydney which stayed put.

The Western Market Indicator (WMI) also fell, down 11ȼ to finish the week at 1504ȼ/kg. All medium to fine indicators in the west fell between 11 to 24 cents.

Crossbred wools were also largely weaker falling between 1 to 7 cents except for the 30 MPG in Melbourne which lifted 2 cents.  Cardings largely bucked the trend, with the indicators lifting by 9 cents in Melbourne & by 2 cents in Fremantle, although in Sydney the same indicator fell by 7 cents.

There was another solid offering this week, 45,059 bales, with 38,757 sold resulting in a pass-in (PI) rate of 14%.

This week on Mecardo Andrew Woods looked at wool quality schemes from an international perspective concluding that although the amount of wool accredited to these schemes here is growing, we could be supplying as the demand for these types of wool will continue to grow.

Andrew also looked at the price of the 21MPG in relation to cotton, which has been having a stellar run lately. In relation to cotton the 21MPG is currently in the low range, historically, implying that there is little risk of downside to the indicator while the cotton price stays high.