Wool market update - 10 November

The Australian wool market has recorded an overall loss this series, albeit by the barest of margins. 

Although a loss was recorded there were positives to be taken from various aspects of the market. 

The market opened softly and by the end of the first day many of the individual Micron Price Guides (MPGs) for merino fleece finished lower, the movements ranged between 19 and +6 cents. The AWEX Eastern Market Indicator (EMI) lost 7 cents for the day. 

On the second day the market rallied, and prices generally rose. In the East the MPG movements ranged between 1 and +22 cents. 

The EMI rose by 6 cents for the day, closing the day and the week at 1,128 cents, 1 cent lower than last week’s close. 

Selling last in Fremantle strong widespread demand help to push the market higher across all merino fleece types and descriptions. Here the MPGs rose by between 15 and 22 cents. 

The rises were enough to ensure that all Western MPGs finished in positive territory for the week. This strong finish has set the market up for a strong opening next week. 

Another positive this week was that the market performed very well when viewed in US dollar (USD) terms. 

The majority of Australian wool is traded in USD terms, with a strengthening Australian dollar (the AUD rose by 0.83 cents since the close of last week) when viewed in USD terms the EMI recorded a 9 US cent increase, closing the week at 723 US cents. 

The crossbred sector struggled this week, the movements in the MPGs between 26 and 30 micron ranged between  13 and  20 cents, the losses in these MPGs prevented the market from recording an overall increase. 

Next week’s offering is forecast to increase. 45,419 bales are currently expected to be offered in Melbourne, Fremantle and Sydney.