AUSTRALIAN WOOL MARKET M11. 19/11/2022.

The Australian wool market has fallen again this week, driven by weaker demand. The talk amongst the trade early in the week was
of a cheaper market, the only question was how much it would fall. When the market opened in the East the prices on offer were
noticeably lower but not as low as some buyers predicted. Good style lots and wool possessing favourable additional measurement
(AM) results continued to attract solid support and were least affected by the falling market. Lesser style wool, wool with poor AM
results and wool carrying higher levels of vegetable matter (more than 1.5% in particular) were not as well supported and recorded
larger falls. By the end of the first selling day (Wednesday), the individual Micron Price Guides (MPGs) for merino fleece had dropped
by between 14 and 59 cents. These losses combined with overall falls in the skirting, crossbred and oddment sectors resulted in a
27 cents drop in the AWEX Eastern Market Indicator (EMI). On the second day of selling (Thursday) the market continued to fall but
at a slower rate than the previous day, due in part to strong resistance from sellers, many of whom were not prepared to accept the
prices on offer. By the end of the day the passed in rate for merino fleece nationally had climbed to 27%. The movements in the
merino fleece MPGs ranged between unchanged and -44 cents. The EMI lost another 12 cents, closing the week at 1,261 cents, an
overall fall of 39 cents, a reduction of 3%. A noteworthy event, albeit a negative one, was the 30.0 micron MPG in the South which
fell to 303 cents, this is a record low for this indicator. Next week’s offering reduces. Currently, there is expected to be 35,949 bales
on offer in Melbourne, Fremantle and Sydney which is a designated Superfine sale.

Regards,

Adrian.