The wool market continued to struggle last week with the composition of the offering being of more concern than the overall volume which was only 29,000 bales for two centres.
The seasonal conditions of earlier in the year are unfortunately starting to play out in the market with the large volume of low Strength and High Mi-Break fleece wools now hitting the market.
This becomes a nightmare for exporters to put consignments together that can average out to any reasonable specs: with the volume of High Mid-Breaks dominating the offering and the expectation of more coming in the months ahead it has created uncertainly in the short term.
The news that Olam International will be winding up its Wool Export arm Queensland Cotton in the coming months added a little more fuel to the fire of uncertainty last week with speculation of just how much Stock Queensland Cotton may or may not have and how that will be disposed of.
With the Eastern Market Indicator slipping 19 c/clean and just hanging on at 1001c/clean the premium for the better style and high strength wools is being over shadowed by the the weaker types.
The current premiums for the 40 plus NKT wools with low mid breaks can be between 80 to 100 c/clean. The strong message remains that careful preparation will pay in such a difficult market and the idea of cutting corners in preparation is throwing total caution to the wind and dollars.
While most categories slipped back last week the market for the free skirting's as well as the Carding's still shows a good return and are helping the bottom line on the clip. The Carding's market despite it's ease remains at its 95 per cent decile of 10 years. Crossbreds had a non event week with mast types easing, but still competitive in comparison to the whole market.
The Forward market remained subdued following the physical sentiment for the week.
The volume rostered in coming weeks will no doubt adjust with both buyer and seller needing to take stock of the situation and hope for a little more direction in coming weeks with these levels tempting new business to be written to start a small recovery. The AWI Market information reported towards the end of the selling week, some trickle of better business was becoming available, as the fact remains that greasy wool in front of machines is at a dangerously low level compared to global processing capacity, and wool needs to be bought if machines and factories are to remain viable.