Wool hits four-week plunge

Countryman - - WOOL - Bob Gar­nant

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.

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