Australian wool auction sales adjusted heavily downwards this week in complete contrast to the impressive gains of last week. Following two weeks of consecutive rises and seeing the AWEX EMI (eastern market indicator) go into record territory, the market finally hit a price point where the price hurt the prompt demand, and the market reacted accordingly. By the close of selling, the EMI settled at 1572ac clean/kg, eliminating 42ac from the record level set last week. The EMI in USD fell similarly by 40usc clean/kg to a close of 1241 usc clean/kg.
Significant passed in rates was the surprising aspect of the week, with over 18% of the Melbourne Merino fleece and 12% of the Sydney merino fleece failing to reach growers expectations. Given the prices being offered were just off a record high level, this was a paradoxical figure to most exporter buyers, but perhaps it was more to do with the speed of the market adjustment rather the actual price level that caused such high passed in rates.
Click here to access AWI's Wool Weekly Market Report (PDF 872 KB)