Weekly Wool Report: poorer quality wool struggles at market

Market: The EMI dipped 16 cents to close at 1,947c/kg. Photo: File.
Market: The EMI dipped 16 cents to close at 1,947c/kg. Photo: File.

Week Commencing 01/04/19

Week 39 saw a similar outcome to previous weeks with poorer quality wool struggling to find support while better types continue to gain support.

The Eastern Market Indicator dipped 16 cents to close the week at 1,947c/kg.

The week saw a continued 'two markets' for poor and good quality wools.

The discounted poorer quality wools are affecting the individual micron price guides as they dominate the market in quantity.

As a result, the northern merino indicators all tracked downwards this week with the 17-micron indicator dropping 25 cents to close at 2,513c/kg.

The 19-micron indicator finished at 2,316c/kg after falling 15 cents and the 21-micron indicator fell 4 cents finishing the week at 2,279c/kg.

ALSO MAKING NEWS:

The Northern crossbred selection, especially the better prepared lines, seemed to continue attracting support with the 26-micron indicator increasing 17 cents to finish at 1,425c/kg.

The merino cardings indicator for the North decreased 30 cents finishing at 1,142c/kg.

There was a slight increase in Indian support in the market this week with China remaining quiet.

No one seems to be building stocks with some mills reducing production to continue their efforts of cutting down on costs while others remain at full production.

The market is expected to remain steady for the next couple of weeks as no changes to quantity or quality are expected.

However, the approaching Easter recess could bring some volatility to the market.

Week 40 has a national offering of 38,212 bales with Sydney offering 9,524 bales, Fremantle will offer 7,226 bales and Melbourne will offer 21,462 bales across the two selling days.