2024 opens the batting with a 50K offering

wool_s_014

A 50k bale offering greeted buyers to start the calendar year but the East Coast market absorbed the pressure of supply to end this week’s innings.

Both volume and the level of variability of quality were significant on the East Coast, resulting in an overall mixed result as the week progressed.  It’s fitting that on balance the Eastern Market Indicator (EMI) this week rose just 1ȼ to sit at 1213 ȼ/kg.

Out of the gate, the finer end of the spectrum saw positive price movements, in Sydney 16.5 MPG rose 69ȼ to 2095ȼ/kg and improved 31ȼ to 2092ȼ/kg in Melbourne.  17MPG in Melbourne finished 6ȼ higher to 1931ȼ/kg.

The Southern market saw an influx of supply in broader micron wool as the sale week progressed resulting in a general easing of pricing and a bump in the pass-in rate.  Even still 18MPG eased just 2ȼ to 1668 ȼ/kg. The Western Market finished weaker across all micron categories with 18MPG losing 22ȼ to 1623ȼ/kg and 21MPG losing 35ȼ to 1343ȼ/kg after a 12K bale offering was presented.

Andrew Woods this week investigated the supply of Ultrafine wool in Australia (read here).  Although Ultrafine wool accounts for relatively small volumes, the supply of 12 to 14 micron wool has increased substantially during the past decade. Despite these increases in supply, price levels for 13-14 micron wool are tracking at high levels. 

Next week

With the EMI within 10% of where it began the previous calendar year, it is fair to say that the wool market has been resilient in the face of stagnant global economic growth.

Next week’s significant offering of 55, 660 bales will test the market with plenty for buyers to choose from.

Have any questions or comments?

We love to hear from you!

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: AWEX, AWI, Mecardo

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services

Have any questions or comments?

We love to hear from you!

Want market insights delivered straight to your inbox?

Sign up to the mailing list to get regular updates to new analysis and market outlooks

Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
Listen to the podcast

Join the Mecardo team for the Commodity Conversations podcast, where we provide short weekly market recaps and longer conversations with guests to discuss the drivers and trends in livestock, grain and fibre markets.

Photo of a farmer surrounded by Merino sheep in dusty yards
Research: Analysis of the Australian sheep flock

In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making. 

Image of harvested grain pouring into a chaser bin
SERVICES AND CAPABILITIES STATEMENT BROCHURE

We don’t just bring you the most up to date market insights. Find out more about Mecardo’s services including risk management advisory, modelling, benchmarking, research & consultancy.