THE wool market has plummeted to its lowest level since July after the Eastern Market Indicator (EMI) lost 29 cents a kilogram - the largest week-on-week fall in six months.
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The Australian Wool Exchange EMI now sits at 1006c/kg - down 53c/kg from where it was for the same week last year.
More than 37,500 bales were offered last week at the three auction centres with 16.3 per cent passed in at auction.
At the Sydney auction room falls of more than 39c/kg were felt across all micron fleece indicators (MI).
The 17.5MI was hit the hardest, losing 50c/kg to close at 1208c/kg.
In Melbourne, although the price pinch was less brutal across the board, the 23MI slipped 50c/kg to settle at 1061c/kg.
In the west at Fremantle falls for fleeces were upward of 31c/kg- the 19MI lost 50c/kg to close at 1116c/kg.
AWEX senior market analyst Lionel Plunkett, said the strong Australian dollar last week did not favour the wool market.
Mr Plunkett said the first quarter of the calendar year had typically been a buoyant three month period for the wool market.
He said since 1979 the first quarter had closed ahead 63pc of the time, however this year was the largest recorded loss (minus 128c) since the Reserve Price Scheme Collapsed in 1991.
Of the 12 selling weeks since the start of 2014, only three have returned a positive market result.
Jemalong Wool managing director, Rowan Woods, Forbes, was among 50 woolbrokers who attended the Australian Wool Innovation wool broker forum in Sydney last week and said, unfortunately. the message wasn't as bright as he'd hoped.
Mr Woods said an over supply of fine wool, and a cautious approach in the short term were key messages at the forum.
"At the moment in the wool industry there are two markets: the carding market which, as a general rule, supplies the knitted sector and has been quite strong for a couple of years; and the fleece sector, which has been on a downward slide since the second sale after the Christmas break.
"Whilst this slide is slowing, the bottom may not have been reached.
"However, we are starting to see a point where the market is finding an equilibrium between low supply and what the market can sustain.
"It would appear now to be approaching its lowest point in 12 months, and is showing signs of settling at this level," he said.
Mr Woods said his clients with broader micron wool above 19-micron were still opting to sell, while those with wool at the finer end were holding onto their clip.
"The fine wool market is trading at levels about the 35th percentile across a three year average, whilst the broader end is still enjoying levels more like the 75th percentile. Most producers of 19 and broader, whilst not entirely happy to sell, realise there is more downside than up, whilst producers of finer microns are quite prepared to wait," he said.
Mr Woods said the market didn't appear to have a clear direction for at least the next few months.
"One thing you can always count on with the wool market is when it changes it changes quickly."