The Eastern Market Indicator (EMI) fell 10ȼ to 1142ȼ/kg, with a cumulative fall of 70ȼ or 6.5% for the calendar year. In US$ terms the market gave up 8ȼ to close at 745.
While the market has remained stagnant with minimal weekly changes, it is in fact marginally higher than the season-opening level. The EMI has risen 1.4% or 16 cents across the season.
The downward pressure on the market was most noticeable in the fine wool types, with 18.5 MPG and finer losing 20 to 60 cents. AWEX reported that there was noticeable interest in wool measuring between 19.5 & 21.0 MPG, where the downward pressure was less severe and at times showed some improvement.
This lines up with supply; March delivered 25% less wool in the 19.5 to 21.0 MPG range, while for finer than 19.5, supply remained strong.
Cardings were solid compared to last week, while Crossbred types again provided a mixed result. The finer types (25 & 26 MPG) were down 10 & 11 cents respectively, but 30 MPG managed to lift by 5 cents.
There were 44,437 bales offered with 40,950 (another large volume) sold. In the end, 7.8% was passed in and for the fifth week this year over 40,000 bales were sold, lifting the weekly average clearance to 38,999 for the season.
On Mecardo this week, Andrew Woods dives into Crossbred wool prices (read here). Crossbred supply at Australian auctions remains plentiful and continues to pressure prices downwards. Despite this, the prices of broader micron categories have lifted compared to year-ago levels in US dollar terms, with no change in 28 MPG. A weaker Australian dollar has helped push local prices up beyond the changes seen in US dollar terms. At this stage, the core Australian crossbred micron categories remain extremely cheap in relation to historical levels and to broader crossbred prices.
There is also an interesting discussion on the Mecardo podcast, Commodity Conversations. (listen here). Mark Symes, Southern Region Wool Manager for G.Schneider Australia, discusses what is driving demand in the wool market with insights from key customers in China and Europe.
Sellers meet the market
Next week
Following the Easter break the wool market resumes on 8th April selling at all centres.Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, AWI, Mecardo
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