The indicator settled on 1231cents. The market has now retraced 11 per cent from its peak in early June and with only one more sale to run before the annual July recess.

Buyers, growers and processors will be hoping for some stability next week.

Prices for the main Merino indicators are almost identical across the east coast, with the western indicators just a few cents behind, which is usually another indicator of stability being not far away. Discounts for VM, higher mid breaks and other faults are returning to more normal levels after being squeezed to an almost insignificant basis during the market’s rise.

A normal, healthy market will provide strong discounts for such faults whereas a market that is overheated or squeezed tends to hide such market feedback, much to the processor’s angst.

Crossbred and carding wools did retrace significantly during the week by comparison to previous trends and also compared to the broader Merino fleece wools.

This is mainly a symptom of the processing cycle, in that the products that have been driving these wools during the past six months, ladies coating materials and double-faced fabrics also predominantly for women’s wear, have now been manufactured. In the main these garments are now ready and being transported to retailers shelves.