EMI tumbles another 47c as wool buyers retreat

Wool market jitters as EMI plunges below 1700c a kg


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WOBBLY WOOL: Growers may withhold more wool from sale if prices stay on downward track.

WOBBLY WOOL: Growers may withhold more wool from sale if prices stay on downward track.

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Buyers were in retreat at the second sale after the three-week winter recess.

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The benchmark eastern market indicator (EMI) has plunged below 1700 cents a kilogram as prices tracked downward at selling centres across the nation.

The EMI shed a worrying 47c today to land at 1676c after dropping 31c yesterday during the first auction wool sale after the three-week winter recess.

Market pundits were right to be nervous about the re-start of sales after China-US trade tensions were wound up even higher during the break by President Donald Trump.

The market had staged a welcome rebound prior to the break but some market observers feared the rally wouldn't be sustained and they were right.

AWEX reported the pass-in rate hit 28pc in Sydney today as reluctant buyers retreated from the market which triggered price reductions across all micron categories.

Nationally 20,710 bales were offered with 14,141 sold for a turnover of $23.1 million, AWEX reported.

Wools of 18.5 microns and broader recorded losses of 60-80c while the finer microns ended the day 20-30c lower.

The story was the same in Melbourne with wools 18.5 micron and finer shedding 45-55c while 19 micron and coarser fleece fell by 75c.

A lack of buyer confidence across the Nullabor sent the Fremantle Merino fleece market sliding by 90-100c compared with yesterday's rates. More than half the 3579-bale offering was passed-in.

A total 20,833 bales were offered nationally yesterday with 15,462 sold for a gross of $27.9m.

Just over 7000 bales were offered in Sydney with a clearance of 5677 bales.

A total 43,603 bales are rostered for sale in Sydney (35,215) and Fremantle next week which will further test the market.

The story EMI tumbles another 47c as wool buyers retreat first appeared on Farm Online.

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