THE eastern market indicator (EMI) slumped by 3.2pc this week, losing all of last week’s strong gains and ending the run of good prices since the new wool selling season started in July.
Since then, wool prices lifted by 20pc, despite pressure from the rising $A through that period.
The $A lifted above US90c during later sales this week - that appears to have been a rise too far, making wool too expensive for the market.
The EMI closed down by 28c/kg, to 848c/kg, wiping out last week’s 30-50c/kg jump.
Viewed in the eyes of our major customers, however, the EMI lost only 7 cents in US terms, reflecting the strong $A.
Finer microns were most affected in the downturn.
AWEX reports that Fremantle bucked the eastern states’ trend, rising by 3c/kg, but that was because WA missed out on last week’s big gains on the previous Thursday, due to Fremantle’s one-day sale on Wed last week.
Performance of the regional indicators this week were:
• Northern, in Sydney, down 26c/kg, to 874c/kg.
• Southern, in Melbourne, down 29c/kg, to 827c/kg.
• Western, in Fremantle, up 3c/kg, to 867c/kg.
AWEX reports that just under 48,000 bales were offered nationally including a three-day Melbourne sale, with a NZ-only offering on the Tuesday.
A similar-sized offering is expected next week with a forecast total of just under 48,000 bales to be offered in three centres.
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