Wool report: EMI drops due to lower yielding, lesser style wools

Photo: File
Photo: File

Week Commencing 15/04/19

Week 41 saw a continuation of lower yielding and lesser style wools which resulted in the Eastern Market Indicator (EMI) dropping seven cents to close at 1,936c/kg.

The Northern offering for the week was the smallest sale since AWEX began (1995).

The north had slight losses across the week and this can perhaps be attributed to the small offering.

The 17-micron indicator for the north lost 15 cents to finish at 2,497c/kg, the 19-micron indicator dropped six cents closing at 2,293c/kg and the 21-micron indicator decreased four cents to finish the week at 2,264c/kg.

Supply pressure on Merino prices is continuing with production forecasts expecting no significant changes in the near future. The crossbreds once again lifted for the week due to an increase in demand.

The 28s experienced the highest rises for the week and are expected to rise again which is also predicted to lift the 27,26 and finer micron wools. 

ALSO MAKING NEWS:

This rise is predicted to also be a result of supply pressure similar to merinos as dry conditions continue.

The cardings are expected to continue downward as they look for a base.

Demand in Europe has slowed, and China is generally low, however business continues, and some have sold during the week.

There is no talk of stock build-up so adjustments to production seem to have been made and current supply levels simply will not support a fall for the wool market.

May is expected to bring some volatility however overall things seem to be going smoothly.

Week 42 is the last sale before the Easter one-week recess and for the north will be held at the Sydney Royal Easter Show.

Due to the public holiday on Friday, sales will take place on Tuesday and Wednesday across the three centres.

The national quantity of bales on offer for trade has increased with 42,487 bales available.

Sydney will offer 9,992 bales, Fremantle will offer 10,651 bales and Melbourne will offer 21,844 bales across the two days.