Wool Report: Eastern Market Indicator drops four cents, Week 40

Photo: File
Photo: File

Week Commencing 08/04/2019

Week 40 saw the Eastern Market Indicator drop four cents to close the week at 1,943c/kg along with a slightly increased national offering of 37,454 bales.

Comparatively, last year's corresponding sale had an increased quantity of 9.6 per cent.

The Northern 17-micron indicator dipped one cent to finish at 2,512c/kg, the 19-micron indicator dropped 17 cents closing the week at 2,299c/kg and the 21-micron indicator decreased 11 cents finishing at 2,268c/kg.

Yields have continued to lower and it is expected they are at the end of the low with the prevalence of these wools is impacting on the downward pressure of the market.

There has also been an increase in mid breaks along with increasing staple strength.

Crossbreds recorded increases and it is these increases that lead to the EMI having such a slight downward variation from last week.

ALSO MAKING NEWS:

The northern 26-micron indicator increased 20 cents to finish the week at 1,445c/kg. The merino cardings for the north decreased 41 cents this week closing at 1,101c/kg.

There is more downside expected for the cardings especially as they continue along their seasonal pattern and it is suggested they may find their base June and August.

With demand lacking, mills are buying what they need when they need it and no stocks are being built up.

While Europe remains optimistic, business in China is mixed, with some un able to sell, worsted fabric, and others are seemingly doing well, woollen.

South African wool remains banned from China and is being stockpiled. Currently this isn't affecting the Australian market, however, when the stockpile becomes available to China it may begin to affect the demand for Australian wool.

National quantities increase in week 41 with Sydney offering 6,836 bales, Fremantle offering 10,898 bales and Melbourne offering 20,978 bales across the two sale days.