THE Eastern Market Indicator dropped to a two-and-a-half-year low yesterday.
The EMI dropped by 9 cents to 722 cents a kilogram.
The Northern Market Indicator was up 4c to 749c/kg, while the Southern and Western market indicators dropped 22c and 20c to 699c/kg and 695c/kg respectively.
However, the passed in rate was slightly better than last wee, with only 20.1 per cent passed in.
AWEX senior market analyst Lionel Plunkett said the EMI last hit 722c/kg in May 2006.
“It dipped to 633c/kg in December 2005 – that was the valley after it had come off a high,” Mr Plunkett said.
“If it drops below 633c/kg then we have to go back to 2000 when we last saw that.”
Yesterday’s market in Melbourne saw the 18 micron drop by 65c, the 19.5 by 46c/kg and in the broader wools 25 and 26 micron dropped by 43c/kg and 48c/kg.
Mr Plunkett said the broader wools were usually cheaper than the finer wools but had been dearer a few weeks ago.
“There were exporters that needed wool to fill a few orders and that created a reverse price differential,’’ Mr Plunkett said.
“Now that has dropped away and the prices are back to normal.”
Mr Plunkett said the offerings in Newcastle yesterday could have had a dampening effect on the finer wools.
