Australian wool markets opened this week under similarly poor conditions that have been experienced for a month or two now. Whilst prices have retracted considerably over this period, the market has taken steps down rather than plummet substantially on any one given day, giving evidence of an underlying demand, albeit price sensitive, and enough carried over forward contracts being executed to prevent a free fall situation.
Seller resistance locally in Australia from our woolgrowers has also seen supply tighten, with many growers setting strict reserves or completely withdrawing their wool from sale after receiving the pre-sale price evaluations from their wool brokering agents. The conclusion to auction selling this week saw the EMI fall under 1000acents clean/kg, a figure which hasn’t been seen for quite some time. In fact, this is the first time the week ending EMI has fallen below 1000ac since May 2013, and has remained above the 1000ac mark 90 per cent of the time since mid-Nov 2010.
Click here to access AWI's Wool Market Weekly Report (pdf 1046Kb).