Wool market update - 3 November

After recording two positive movements and an unchanged result over the previous three selling series, the Australian wool market has fallen this week. 

The national offering rose by 5,354 bales to 44,378 bales, making this the largest national offering since the end of August. The total amount offered this season is tracking well above the previous. Season to date there has been 625,655 bales offered, this is 24,103 bales more than week 18 last year, an increase of 4.0 percent (pc). 

There was very strong buyer interest on wool possessing favourable additional measurement (AM) results, and wool in this category recorded very little change. 

Lesser style wool, wool with less favourable AM results and wool containing any types of noticeable fault were discounted. It was the discounting of these types that drove the market lower. 

By the end of the series the movements in the individual Micron Price Guides (MPGs) for merino fleece across the country were between plus 7 and minus 32 cents. The skirtings, cardings and crossbreds recorded minimal movement for the series, meaning the overall market movement was driven by the merino fleece. 

The AWEX Eastern Market Indicator (EMI) fell by 10 cents for the week, a reduction of 0.9pc. The EMI continues to trade well below last year. Compared to the corresponding sale of the previous season, the EMI is 132 cents lower, a fall of 10.5pc. 

Due to a weakening Australian dollar (the AUD fell by 0.54 US cents since the close of last week) when viewed in US terms the fall in the market was higher. The EMI fell by 12 US cents, closing the week at 715 US cents, a fall of 1.7pc. 

Next week sales will be held on Wednesday and Thursday to accommodate a public holiday in Melbourne on Tuesday. 

45,246 bales are currently expected to be offered in Melbourne, Fremantle and Sydney, which is a designated Superfine sale.