Sheep in paddock photo by Jessa Bottrill

Smaller volumes this week meant that the national offering total year-to-date is essentially on par with the same time last year. As per AWEX reports, the value of wool sold at auction this year to date is now $146 million less than last year which highlights the impact of the decline in fine wool premiums and lagging demand on the wool market this season.

The Eastern Market Indicator (EMI) was 1ȼ better off this week to sit at 1158 ȼ/kg.  Two sale days saw two different results as a welcome strong opening was pulled back on Wednesday.  The EMI expressed in US dollars lost 4ȼ to 755 USȼ. This is 18% lower year on year, driven by the fall in pricing over the summer period and the exchange rate continuing to be stuck in the mud at the 0.65ȼ range.

 

The Sydney market saw minimal changes as far as pricing goes at the end of the week. Balanced would be another word as pass-in rates were low (2.7%), and buyers and sellers appear to be seeing eye to eye on the market currently. 17 MPG improved 10 ȼ to 1767 ȼ/kg and 16.5 MPG declined 14 ȼ to 1873 ȼ/kg.  

 

Further south to Melbourne, the declines were steeper as 17.5MPG lost 26ȼ to 1642ȼ/kg, at the broader end 20MPG improved 11ȼ to 1336ȼ/kg.  The Western Market Indicator improved 3ȼ to 1287ȼ/kg driven by improvements at the medium micron categories.

 

This week on Mecardo, Andrew Woods provides an update on Sheep offtake for both the East and West Coast (read here). Eastern Australian sheep offtake remains close to neutral levels but in response to the dry 2023 on the West Coast, the flock should see a reduction in size as lamb offtake reaches record levels. 

The week ahead….

Next week is another 2-day sale week but the offering looks to be a couple thousand bales higher. These extra bales are headed to Melbourne and Fremantle sales.

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Data sources: AWEX, AWI, Mecardo

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