Friday, October 18, 2019
A little more give and take
The shaky wool market opened this week lacking power. With a decent offering, the first day of sale saw instant corrections across the board, only to show signs of a resurgence at the days' end. This momentum carried through to a stronger market on Thursday, however it wasn’t enough for the market indicators to avoid overall declines on the week.
Friday, October 11, 2019
It’s a rollicking ride for wool
It concerns me that we are starting to get accustomed to the “roller-coaster” ride that has become the wool market. The wild fluctuations are causing sellers a headache, deciding whether to sell, pass lots in, withdraw or wait.
We can only guess what this is doing to the exporters and processors, as they manage supply requirements alongside the unpredictable price movements of recent months. It is hard to imagine anyone is pleased with the recent volatility and it must be damaging the wool markets reputation internationally.
Friday, October 04, 2019
The market giveth, and the market taketh
The concerns we expressed last week about the weak finish to sales in Fremantle came to fruition, with the Melbourne and Sydney markets quickly adjusting down on the opening day.
This proved a catalyst for a loss of confidence and the market tracked lower wiping out last week’s gains and then some.
Friday, September 27, 2019
Wool re-discovers its mo-jo
This week the wool market opened strongly in the three selling centres, posting gains across all MPG’s of up to 100 cents. Again, the medium merino types found the strongest price increases, although any “Good style” wools with high N/Ktex in the fine types were also highly sought.
By the weeks end 18 MPG in Melbourne had improved 40 cents, 20 MPG 100 cents, and the Cardings indicator were again above 1,000 cents across all centres. A strong result across the board.
Friday, September 20, 2019
Calm after the storm
Last Thursday while Melbourne & Fremantle continued to lift, Sydney didn’t sell, so this week the market between centres firstly had to realign. This saw Melbourne down and Sydney up on Wednesday, however when the dust had settled at the close of the week there was a feeling of relief that the market overall was positive following a couple of tumultuous weeks. Despite much speculation before the market opened that this week would see much of last weeks gains returned, the result was strong with a steady demand from buyers at the current market levels.
Friday, September 13, 2019
Wool market rises from the ashes
It’s been a week of major comebacks. While the wool market lift might not be the most celebrated national victory of the week, records were hit for six to make a spectacular recovery. Goodwill discussions between China and the US on trade appear to have significantly boosted buyer confidence and resurged competition.
Friday, September 06, 2019
Did the dead cat bounce?
The wool market had a small reprieve from the exhaustive losses that began in June. We did see a similar pause a fortnight ago, although reports from the auction floor suggest that this time around it might be the point of recovery as glimpses of fierce competition were seen on day two.
Friday, August 30, 2019
Tit for tariff stripping confidence
There was no sign of confidence in the wool market this week. Rostered bales were withdrawn left right and centre and much of those that made the sale were passed in. With another week of US-China tariff announcements and severe price declines, uncertainty is at an all-time high.
Friday, August 23, 2019
Wool market hits the breaks
The severe price dive of last weeks market thankfully eased this week. While Merino categories still experienced declines, producers can take some relief knowing that the “emergency” status seems to have been called off for now.
Friday, August 16, 2019
Maybe now it can only go up?
Dive, crash and plunge are the headlines strapped to this weeks wool market which saw the largest correction in percentage terms in the last eight years. In absolute price terms, it was the largest in the last 16 years. That being said, with the Eastern Market Indicator currently at 1,513 cents, prices are still higher than the previous two peaks.