The Eastern Market Indicator (EMI) fell by 128¢ this week to close at 1,006¢ influenced by a stronger Australian dollar which lifted US2.5 cents since the last sale (10th July) to US$0.719 which influenced the EMI in USD terms to a somewhat subdued 63¢ fall to 723¢. The Western Market Indicator gave up 147¢ from the previous sale to settle at 1055¢.
The offering increased by 7,500 bales on the last sale to 42,764 bales this week, overwhelming the market and with a pass-in rate of 30.1%, 29,911 bales were sold, down 3,000 bales. WA passed 51.2% of all wool offered, and 58.9% of Merino fleece lots, to only clear 3,995 bales to the trade.
Analysis by Mecardo (Andrew Woods) this week looked at AWTA test data and demand, with a three-month review indicating that the market under COVID-19 conditions can “absorb in the range of 70 to 80,000 bales per month”, so the 42,700 offered this week was always a risk to the market.
No indicators were spared, with -150 to 210¢ losses for all Merino types.
The Crossbred sector also buckled, with 35 to 82¢ falls reported. AWEX noted that in percentage terms they were similar to the Merino types.
Cardings didn’t fare any better, -85¢ in Sydney, -99¢ in Melbourne and giving up 151¢ in WA. on the 700 bales of cardings that sold.
Sales resume but it’s not pretty
Next week
Next week we drop back to 33,413 bales, demand however is suffering from a complete lack of confidence so it is difficult to b optimistic that the market has bottomed.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: Mecardo, AWEX
Categories
Have any questions or comments?
Crossbred wool update: volume, price and value
In November Mecardo looked at crossbred wool volumes, price and gross sale value which showed an increased volume of wool sold at auction accompanied by
Withdrawals up as winter approaches
Wool markets opened to underwhelming demand across all centres as the trade approaches Winter and the end of the 2023/24 selling season. Although it is
International sheep meat supply and lamb prices
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
Merino market upswing carries on in the East
The positive run continued in the Merino market this week in the east, however, the west failed to sustain the momentum and gave way. As
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
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.
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.
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.