A drop in EMI
THE wool Eastern Market Indicator was 17 cents softer in the last selling week of the season to finish at 2056c/kg clean.
Elders district wool manager Andrew Howells said the cool-down was to be expected and there was “no negative tone” to the market.
“This week, the market has come back in line with the exchange rate but I don’t expect it to fall too much further,” Mr Howells said.
“Even with the slight easing off of the EMI to match the US dollar, we found there was still good competition – it certainly wasn’t doom and gloom.”
The downward pressure was felt most in the finer micron ranges, down 45c in the 18-micron range and 36c in the 17 micron range in Melbourne.
Fremantle was back on board this week to bolster prices, jumping up 84c in the 20 micron indicator to 2363c/kg.
Mr Howells said the market still felt really solid as buyers were only purchasing “in a hand-to-mouth scenario”.
“Overseas mills are buying what they need, instead of committing to a bulk shop,” he said.
“Typically, demand at this time of year isn’t massive and with the three-week break approaching, buyers are focused on only purchasing what they need through the recess.”
The 21 micron indicator saw the best incline, up 10c to finish at 2334c/kg in Sydney and up a bumper 74c in Fremantle to reach 2347c/kg.
The pass in rate was far higher than last week at six per cent, mirroring the increased offering of 31,784 bales.
The AWI forecasts 43,232 bales next week to mark the first week of the new selling season.