Wool hits four-week plunge
The Australian wool market fell for the fourth consecutive week with the benchmark indicator set back 78¢/kg to close at 1776¢/kg clean at last week’s sale.
AWEX market analyst Lionel Plunkett said there were 32,189 bales on offer to the trade, taking the national offering down 15.2 per cent on the previous season.
“By the end of the series the Micron Price Guides had been reduced by 70¢ to 160¢,” he said.
“The EMI has now lost a total of 247¢/kg over this four-week period, and is 340¢ away from its August peak of 2116¢/kg.”
Mr Plunkett said there was a 20.9 per cent pass-in rate nationally, on top of the 8.4 per cent of wool that was withdrawn prior to sale.
The Elders International wool report stated the market was being weighed down with too many wools (drought affected) that did not suit the needs of the processor.
“These wools will have to go somewhere and be processed,” the report said.
“But with less woollen products in vogue like last year’s fake fur and double-sided fabric, it is difficult to find enough spots to use them.”
The Elders report said those popular products were less sensitive to length and strength of the fibre because of their construction.
“The more traditional worsted fabric which is woven requires a strong even yarn, which is not conducive to drought-effect wool.”
The Elders report said some processors, sensitive to the current raw greasy wool price, were blending products using other origin wools, often leading to a higher coefficient of variation fibre diameter and a harsher fabric feeling.
“This will lead to a disappointed retail customer,” it said.