The downward spiral continued last week with most merino fleece types 15/30 cents cheaper, however there has been business done at these reduced levels and we anticipate a firmer market this week with only small rostered quantities during the next month. The AWEX EMI closed down 20 cents last week to 884c/kg which is the first time it has dipped below 900 cents since early August. Since late January 19 micron has fallen 200 cents or 15%, 21 micron has fallen 233 cents or 21% and Merino Cardings have fallen 205 cents or 33%. As mentioned previously we now look to exchange rates to fall and kickstart demand otherwise the current trend will continue, traders have to sell below market levels to obtain business and oversea's mills only look to buy cheap prompt lots to keep machinery active. The other saving grace is the short supply currently on offer and growers reluctance to sell/offer at current price levels, however this is a risk as new season wools and larger quantities are now only a couple of months away.