The Eastern Market Indicator continued its downward trajectory last week to hit 1365 cents a kilogram, down 10c/kg.
Looking at the price in US dollar terms, we can see what may be the start of some positive momentum, with the price finishing at US931c/kg, up US6c/kg on last week.
Optimism returned to the wider market last week, with the ASX200 Index closing on Friday up 34.1 points in response to easing trade tensions between the US and China.
This helped wool prices find support at current levels, and stopped the dramatic price drops seen in previous weeks. The past few months have effectively demonstrated how reactive the wool industry can be to global economic sentiment.
All wool types were down in price this week, with the exception of the finer 17-micron out of Melbourne, which finished at 1823c/kg, up 4c/kg.
Supply continues to be lacking, with just 21,694 bales offered. Passed-in rates fell back to 11.5 per cent, down from last week's 33.4pc.
While the lower supply had an impact on passed in rates, it is yet to have any significant impact on prices. How this dynamic evolves over the season will be of interest to the wider industry.
A hint of positivity was reflected on AuctionsPlus, seeing 462 bales sell between Thursday and Sunday last week. 17-micron wool sold to an average of 848c/kg (greasy) or 1437c/kg (clean) with a top of 1248c/kg (greasy) or 1803c/kg (clean). While 18-micron wool sold for 1070c/kg (greasy) and 1592c/kg (clean).
The top priced lot sold online went to three bales of 17.5-micron AAA merino fleece wool with 0.9pc vegetable matter. The lot was branded KS/TEM, was listed by Moses and Son and sold for 1281c/kg (greasy) or 1792c/kg (clean).
Growers may look to withdraw wool if prices are not at desired levels, but may also need to secure cash in this current economic environment.
