AFTER the wool market's positive opening performance last week, the second week of sales saw a slight easing.
The Eastern Market Indicator (EMI) closed at 1190 cents a kilogram down 26c/kg for the week, with the Western Market Indicator (WMI) closing at 1196c/kg down 20c/kg.
This put the wool market at almost exactly the place it was this time last year.
Slightly more bales were on offer this week, with roughly 58,409 bales going under the hammer compared to the 49,498 on offer the week before.
The main interest came from the usual players, with Chinese buyers dominant along with other interest from Europe and India.
Primaries wool manager Tim Chapman believed that with the volume of bales up this week, sales were certainly not as strong.
"The sales definitely strengthened on the second day which was good to see and that shows there is still demand at this level," he said.
With all microns ranges coming back for the week, Mr Chapman said the best performer was definitely the finer end which was pleasing to see.
"It's certainly a solid market," he said.
"Next week is a one-day sale so that should put some pressure on the marketplace.
"There have also been some lines sold on Wool Trade at the end of last week so the limits are certainly still there.
"Things are firm all round and although the market is slipping a little bit, it is still at a decent level.
"Considering the economic situation around the world the market is holding on exceptionally well."
Westcoast Wools director Luke Grant agreed with Mr Chapman saying the size of the sales was having an effect on price levels.
"The first sale had had quite a bit of wool sold but now with the offerings being quite large, there is not a lot of business there for exporters which has weakened the market a little bit," he said.
"The dollar is creeping up a bit, buying roughly US103 cents and that has dampened sales as well.
"Sitting where the market is, a drop of 20c/kg isn't a huge one for the week."
With the EMI still above the average at the end of week 29 last year, Mr Grant said this showed wool had fared reasonably well especially when compared to other markets like grain.
"For the week the falls were widespread, with the fleece wools being anything between 30c/kg to 40c/kg cheaper," he said.
"Nationally next week still looks to be a big sale with something like 40,000 bales on offer and I would hope the market doesn't change.
"I would say that the downside may be something like 10 to 15 cents but hopefully the lower quantities on offer help the price a little.
"The Chinese New Year is on until February 1 so hopefully when they return there might be a bit of appetite for some business around these smaller offerings."
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