A rising market drew in more sellers this week, but from the outset prices were noticeably lower which saw large amounts of wool withdrawn.

The Eastern Market Indicator (EMI) fell after two weeks of positive movements, down 23ȼ to 1300ȼ/kg, although in US terms a rising Aussie dollar (+0.88ȼ) softened the fall, with the EMI falling just 3ȼ to 833ȼ/kg (US).

 Nearly all types fell this week with 19 and finer microns falling between 11 to 157ȼ across the three selling centres. The biggest drop came from the 16.5 micron in Sydney down 157ȼ to 2405ȼ/kg, still just over 80ȼ higher than its southern counterpart. Medium type falls were significant too, dropping between 27 to 60ȼ, with the 21 micron in Fremantle falling the most, down 60ȼ to 1332ȼ/kg. The Western market indicator dropped 42ȼ to finish the week at 1427ȼ/kg.

Crossbreds finished the week down also, albeit by smaller amounts with falls ranging from 8 to 25ȼ.

Cardings were the only indicators to lift this week, by 9ȼ in Sydney, 20ȼ in Melbourne and 14ȼ in Fremantle.

There as a large offering this week, 41,056 bales, over 5,000 more than the week prior, however as sellers withdrew wool, 17.7% was the pass-in-rate, this eventuated in 33,770 bales sold.

This week on Mecardo, Andrew Woods took another look at what external demand pressures are doing to the merino market, via the German manufacturing index, lfo. He also looked at the supply of long merino wool and the changes in discounts across the micron categories.

The week ahead….

Next week sales are on Wednesday and Thursday due to the Melbourne cup public holiday in Melbourne on Tuesday. We have another large offering coming up, with 43,036 bales scheduled for sale across the three selling centres.

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Data sources: AWEX, Mecardo

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