By Mark Dyson
After weeks of solid gains, the wool market consolidated this week in Australian dollar terms with the Eastern Market Indicator (EMI) finding ground at 1801 cents per kilogram clean, easing 17 cents for the week with the Merino carding indicator falling by 58 cents clean to level out at 1501c/kg clean.
Recent increases in wool values to record levels resulted in an increased supply on the market this week, with the national offering being just over 54,250 bales.
Initially, the market opened up where it left off last week with marginal gains across most Merino micron categories of 3-16 cents clean, with the finer 16-17 micron range increasing up to 40 cents clean.
As the week progressed and the dollar increased towards US 80 cents, values for most micron categories eased as the trade became selective, tending to favour the better measured wools.
By week’s end, values had eased by 5-41 cents clean with the medium-to-strong Merino types mostly affected along with the finer crossbred types which reduced by 12-41 cents clean.
The shining light for the week was the 16-17 micron range, which recorded a modest gain of 16-40 cents clean.
Skirtings tendered to follow a similar trend with the finer, lower VM types least affected. The carding types were not immune from the easing trend as locks, crutchings and stains fell by up to 45 cents clean by the finish of the final day’s selling.
Despite the correction in the market, all Merino micron categories are still trading in the 100th percentile band over the past five years and in reality, in US dollar terms the market showed little change on the previous week.
Next week sees a reduction in the national wool offering to 43,297 bales, with Melbourne hosting 25,154 bales.