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.
When wool buyers walked into selling centres to start the week, Australian wool was more expensive for exporters before bidding began. This set the tone
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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.
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2024 opens the batting with a 50K offering
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.
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Click on graph to expand
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Data sources: AWEX, AWI, Mecardo
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Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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.
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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.