New wool selling season commences with 2018/19 financial year

Photo: File.
Photo: File.

Week Commencing 09/07/2018

Week 01 was the start of the 2018/19 wool selling season corresponding with the new financial year which saw a correction to the market which is evident in the Eastern Market Indicators.

The Eastern Market Indicator fell 62 cents finishing at 1,994c/kg with the drop seen in all micron categories and selling centres. The national wool offering across the three centres for the opening sale was 43,880 bales.

The 17 micron indicator for the North fell 45 cents to finish at 2,827c/kg.

The Northern 19 micron indicator dropped 79 cents finishing at 2,289c/kg. The 21 micron indicator for the North fell 83 cents closing at 2,251c/kg.

The Northern crossbred indicators also dropped with the 28 micron indicator falling 65 cents to finish at 964c/kg.

The 30 micron indicator fell 41 cents to close at 664c/kg. The Merino cardings indicator also had a slight drop of 12 cents to finish at 1,470c/kg.

20 to 23 micron AWTA core testing volumes have dropped significantly for the month of June with a forecasted undersupply to continue up until November. As a result, price risk is still in the market for broader merino wool.

Finer micron premiums continue to come under downward pressure which has pushed price down, seen in the market this week.

Cardings are currently holding their value resulting in a closing gap between carding and combing wools to more sustainable levels.

Globally, there is concern for the market in relation to the Chinese economy due to the current tariff issue which could affect their economic growth.

European demand remains steady with the Italian in particular very happy and have a very promising future outlook for the market.

Week 02 will be the final sale before the annual three-week recess which will see a slight drop in quantity with the national offering of 41,431 bales.

Sydney will offer 14,846, Melbourne will offer 22,545 bales and Fremantle will offer 4,040 bales.