Season 19 - Week 16
The Australian wool market has continued its wild ride this week, this time going down and up within the series.
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The market opened in the eastern centres with immediate losses and continued to soften.
By the end of the day the individual Micron Price Guides (MPGs) had fallen by 9 to 51 cents a kilogram, 18.0-micron and coarser wools were most affected.
On the back of these losses the AWEX Eastern Market Indicator (EMI) lost 27c/kg for the day.
Selling last, the MPGs in the Fremantle region recorded larger losses of between 51 and 69c/kg.
Worth noting however, in the final 25 minutes of selling, there was a noticeable increase in buyer demand and therefore price.
This increased demand flowed into the second day, resulting in the market slowly improving.
The Merino MPGs across all three centres rose by 5-15c/kg.
The EMI only added 1c/kg for the day due to the negative movement in other sectors of the market.
The EMI lost 26c/kg for the series, closing at 1517c/kg.
The crossbred sector was the worst performing sector for the series, the crossbred MPGs fell by 7-55c/kg, with 28.0 to 30.0-micron posting the largest falls.
The skirtings followed a similar path to the fleece, losses on the first day followed by small increases on the second.
The reduction in the crossbred MPGs on the second day of 20-30c/kg prevented the EMI from recording a larger gain than it did.
The oddments were the best performing sector of the week, recording minimal change for the series.
This was reflected in the three carding indicators which lost an average of 5c/kg.
The national offering reduces for the following week, currently there is 32,970 bales rostered for sale in Sydney, Melbourne and Fremantle.
Due to lack of quantity, Sydney will hold a one-day sale on Wednesday.
The constant to-and-fro price movements are wearing a little thin with most people in the industry.
Wool growers are unsure which week to offer, exporters are getting burnt on the way up, taking a little bit more stock in anticipation of more activity, then getting burnt on the way down - and of course the processors are in a similar boat.
Whilst rain would be good, the break in the season for the processing trade is more about orders from customers further along the chain.
If they did suddenly start falling from above right about now nobody would complain, but we are still in October so that is unlikely.
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