Ag News

EMI up 9 cents as the Wool market comes bouncing back after the recess

  • By: "Prime" Ag News
  • Aug 10, 2018

By Mark Dyson - Quality Wool. 

Coming off the back of the three-week annual mid-year recess and an increase in the national wool offering to an expected 51,000 bales, the wool trade took a tentative approach on opening of the market this week.

By week’s end, and with the Australian dollar trading at mid-74 US cents, the Eastern Market Indicator finally found ground at 1990 cents per kilograms clean to increase nine cents on the pre–recess level.

The first day’s selling resulted in an easing trend, with both the Merino and crossbred wool categories retreating in value by 10-57 cents clean.

The majority of falls were in the 20-23 Merino micron categories retreating 30-40c/kg clean, with the finer crossbred 28 micron types tracking back by 57c/kg clean.

As selling progressed over the next two days, the market found a level of trade and with this buyer confidence returned for the Merino wool categories.

By week’s end, the 19 micron and finer types had increased by 30-50c/kg clean on the pre-recess levels, with the 21 micron and broader Merino categories (though finding better support) still generally easing by 10-30c/kg clean for the week.

Overall, the finer crossbred types eased in value up to up to 75 cents clean, with some stronger competition being received later in the week for the better prepared lots.

Better style, low fault skirtings attracted keen competition which assisted the pieces and bellies to increase by 40-80c/kg clean.

As with the trend prior to the recess, locks, crutchings and stains found solid trade support and added a further 15-30c/kg clean to their values on three weeks ago.

Next week sees a reduction in the national wool offering to just over 37,000 bales, with all three selling centres in operation.