The Australian wool market has continued to decline, recording overall losses for the third consecutive series.
Weaker buyer sentiment was evident from the opening lot in the East. This weaker sentiment resulted in less spirited bidding, with buyer enthusiasm waning as the sales progressed. The result was prices opening lower, then deteriorating throughout the series.
By the end of the week, the Individual Micron Price Guides (MPGs) for Merino fleece had dropped by between 31 and 117 cents across the three selling centres, with all regions recording similar falls.
The skirtings followed a similar pattern to the fleece, with general losses of between 40 and 60 cents. The oddments again lacked support and the three Merino Carding indicators dropped by an average of 35 cents.
The crossbred sector also fell, although the losses were not as severe as in the other sectors. The end result of these movements was a 49 cent fall in the AWEX Eastern Market Indicator (EMI), the EMI closed the week at 1,214 cents. This was the largest weekly fall in the EMI since August 2021. The EMI has lost 96 cents (7.3 per cent) over the previous three weeks.
Currency played little part in the losses felt this week. When viewed in US dollar terms the EMI dropped by 39 cents, the 4.6 per cent (pc) fall only slightly larger than the 3.9pc fall in the EMI in Australian dollar terms. The sharp falls were understandably met with seller resistance, pushing the national passed in rate up to 27.3pc, this was the highest passed in rate since August 2021.
The amount of wool withdrawn prior to sale also climbed, the 7.7pc withdrawn nationally, the largest since March. The price reductions of the previous three weeks have not been a deterrent to many sellers, next weeks offering increases.
Currently, there are 47,041 bales expected to be offered nationally.