The AWEX EMI closed on 1319c - down 23c at auction sales in Australia this week.
Whilst the market opened on Tuesday relatively unchanged, by the time it closed on Wednesday, every sector recorded solid losses.
As a result, 15.3% of the 47,558 bale offering was passed in as sellers resisted accepting the lower prices. With the Chinese taking a three-day break for their Labour Day Holiday coupled with the continuing delays of shipping schedules and lack of containers returning into Australia, hinder the financial capacity of our exporters.
Reports of delays of up to 10 days seem to be stretching the exporter's capacity to trade with any continuity in the market, even though Chinese interest seems to be generally positive.
Merino fleece weakened progressively over the two day sale series largely due the Chinese Labour Day (May Day) holiday. With the overnight sales drying up, the Chinese domestic and Australian traders had a much quieter week leaving room for the Chinese Mills indents to step in.
The best style and selected NM types attracted good buyer support, however the low style and measured lots took the full brunt of the price reduction. A few exceptions were in the super-fine merino weaners which attracted spirited support.
Merino skirtings eased by 10-20c on both days to follow the fleece down to a lower price basis. Best style skirts were least affected, however there is a growing number of seasonally affected inferior lots emerging containing heavy VM, un-scourable colour and/or cotted wool emerging.