Farm Tender

Wool EMI retreats 54c/kg for the week

By Mark Dyson - Quality Wool

Despite the Australian dollar remaining relatively stable this week trading at mid-72 US cents, the Eastern Market Indicator retreated by 54c/kg to finally settle at 2013c/kg clean.

At present, overseas importers are endeavouring to pull wool values back in US dollar terms which has created some uncertainty in the marketplace, leaving exporters looking to find the next secure levels of trade.

From the outset of selling this week wool values fell across the board, with losses on day one of 11 – 56c/kg clean for most types.

The trend continued into the final day’s selling with further falls of 10 – 44c/kg, with all micron indicators being affected.

Fine and medium Merino wool types were hardest hit easing up to 70c/kg for the week, with the broader types back 50c/kg.

Recent weeks have generally seen the poorer style wools discounted heaviest, but this wasn’t the case this week as all types came under some price pressure.

Heavy fault pieces and bellies were mostly affected in the skirtings, easing up to 60 – 80c/kg clean.

Finer crossbred types fell by 30 – 40c/kg with the broader than 30 micron categories less affected, easing 15 – 20c/kg clean.

Oddment values retreated heavily across most descriptions, with the locks and crutchings back 60 – 80c/kg clean for the week.

We may be in for a bumpy ride over the next few weeks, as some uncertainty exists to which direction the Aussie dollar will trade against the US/China tariff reforms.

Next week’s national wool offering consists of 42,546 bales, with Melbourne playing host to 24,268 of those.