Trading tumble hits WA wool
WA’s wool market was unable to escape “another tumultuous week” of wool trading last week, dropping more than 160¢/kg.
At the Western Wool Centre near Fremantle, which will have a one-week recess this week, the Western Market Indicator fell 162¢/kg to close at 1598¢/kg clean.
It came as the Australian wool market benchmark indicator fell 163¢/kg last week to close at 1513¢/kg clean, recording its biggest weekly fall since 2003.
Wandering woolgrower Maw Watts withdrew his family’s consignment of 180 bales of November-shorn wool from the Fremantle sale before the sale opened.
Mr Watts said the market volatility made on-farm budgeting and planning difficult.
“The current situation of supply and demand says the market values should be going the other way,” he said.
Mr Watts, who runs 9000 Merino sheep with his sons Tom and Andrew, said it had been a tough start to the year.
“We are frustrated with feed costs and the long-term prediction of rain does not look good,” he said.
Australian Wool Exchange senior market analyst Lionel Plunkett said last week’s market fall was due to a lack of international demand.
“The Australian wool market has had another tumultuous series suffering further large losses,” he said. “The lack of buyer confidence meant that prices deteriorated as the series progressed.”
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