Australian wool prices lower

The Australian Wool Market eased last week, finishing the week 2.0 percent lower, on average, at sales in Sydney, Melbourne and Fremantle. The AWEX EMI decreased by 18c (-2.1 percent) ending the week at 826c/kg clean.
This reflected decreases of 11c (1.3 percent) in the North and 22c (-2.7 percent) in the South, with their corresponding Regional Indicators finishing the week at 855c and 802c clean respectively. The Western Indicator, decreased by 16c (-1.9 percent) finishing the week at 823c/kg clean.
Despite the easing in the market, the respective Indicators remain well above the their levels of six weeks ago, with the EMI and the Northern, Southern and Western Indicators being up by 105c, 89c, 82c and 104c, respectively. The 21 to 23 Micron Indicators are now up by 125c to 135c over the period and by 99c for 24 micron wools. At the fine end, the changes were 13c for 17 micron wool, 55c for 18 micron wool and around 100c for 19 to 20 micron wool.
A total of 56,590 bales were on offer (compared with 76,765 last week), of which 19.7 percent were passed in, comprised of 11.8 percent in Sydney, 21.8 percent in Melbourne and 27.0 percent in Fremantle, reflecting the downturn in the market.
Pass in rates for Merino fleece and skirtings were 22.0 percent and 11.9 percent respectively. A total of 1,950 bales (3.3 percent) were withdrawn prior to sale and re-offered wools made up 14.9 percent of this week's offering.
The New Zealand Merino Company offered 3,772 bales for sale on Tuesday, of which 14.4 percent were re-offered wools. A total of 542 bales (14.4 percent) were passed in and 73 bales (1.9 percent) were withdrawn before sale.
In a three day sale in Sydney and Melbourne, the AWEX EMI decreased by 2c on Tuesday, by 7c on Wednesday, and by 9c on Thursday. Only New Zealand was sold in Melbourne on Tuesday. The Western Indicator decreased by 13c on Wednesday and by 3c on Thursday.
Merino fleece types eased over all micron ranges, with falls of around 30c in the 17 to 19.5 micron Indicators and from 20 to 30c in the 20 to 24 micron Indicators. Better prepared wools and those with better staple strength values were less affected than other types. Skirtings, after falling in line with fleece types early in the week, finished the week on a strong note, particularly those with low vegetable matter levels.
Crossbred wools also moved downwards, with their Indicators falling by 20 to 30¢ during the week. Oddments eased during the week, but generally resisted he extent of the change seen in fleece wools. Demand was led by China, the topmakers and Europe.
Sales will be held in Sydney, Melbourne and Fremantle next week when 68,054 bales are currently rostered for sale. The current forecasts over the following two weeks leading up to the recess show likely offerings of 66,200 to 71,100 bales, 18.9 percent above the corresponding weeks last year. The larger volumes should ensure no shortages for pre-Christmas deliveries. In South African sales this week, the market was up by 3.7 percent.