Back from the Easter recess, results were mixed between selling centres with the Merino segment fairly steady in Sydney, stronger in Melbourne and weaker in the West. A large offering was met with mixed interest influenced by a stronger Aussie dollar.
The Eastern Market Indicator held steady at 1,142¢/kg clean.
The AUD has strengthened since the last week of sales, which appeared to impact
demand. AWEX reported that on the third day of sales in Melbourne, an overnight
fall in the AUD assisted in price improvement.
Melbourne opened to a softer market on Tuesday but found its
strength on Wednesday and Thursday across 17.5 to 22MPG with many microns
lifting around 20¢ this week.
In Sydney, stylish
(MF4) lots with low CVH were keenly sought on Wednesday. 16.5MPG lost 33¢ and
17MPG was down 10¢ but most other Merino fleece MPG’s were steady or slightly
stronger.
Fremantle’s
Merino fleece sector lost ground on Tuesday, lots with poorer style, lower
yields and higher VM levels were irregular. All microns experienced price
declines, which saw the Westen Market Indicator drop 15¢ to 1269¢/kg.
Merino cardings
saw variable results across each selling centre. Sydney gained 10¢ on the week,
Melbourne picked up 2¢ while Merino cardings in Fremantle were hit with a 24¢
drop.
The crossbred
segment has mixed results this week. 28MPG saw no change in price, but 26MPG
lost 10¢ and 30MPG ended 8¢ lower.
50,148 bales were
offered to the trade this week and with a pass-in rate of 7.4%; 46,457 were sold. This figure isn’t unusual
for post-Easter recess, coming in line with the volume sold post-Easter last
year.
The analysis done
by Andrew Woods on Mecardo earlier this week (read here) sheds some light on the recent price
moves in the wool market. Volumes have tightened up across all micron
categories, but broader merino volumes are suffering the biggest falls. This is
offering some price support and will continue to pressure merino micron price
differentials to narrow.
Next week
A total of 46,411 bales are rostered for sale in next week’s auction with all centres selling on Tuesday and Wednesday.
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A goldilocks wool market: not too hot, not too cold
The Eastern Market Indicator held steady at 1,142¢/kg clean. The AUD has strengthened since the last week of sales, which appeared to impact demand. AWEX reported that on the third day of sales in Melbourne, an overnight fall in the AUD assisted in price improvement.
Melbourne opened to a softer market on Tuesday but found its strength on Wednesday and Thursday across 17.5 to 22MPG with many microns lifting around 20¢ this week.
In Sydney, stylish (MF4) lots with low CVH were keenly sought on Wednesday. 16.5MPG lost 33¢ and 17MPG was down 10¢ but most other Merino fleece MPG’s were steady or slightly stronger.
Fremantle’s Merino fleece sector lost ground on Tuesday, lots with poorer style, lower yields and higher VM levels were irregular. All microns experienced price declines, which saw the Westen Market Indicator drop 15¢ to 1269¢/kg.
Merino cardings saw variable results across each selling centre. Sydney gained 10¢ on the week, Melbourne picked up 2¢ while Merino cardings in Fremantle were hit with a 24¢ drop.
The crossbred segment has mixed results this week. 28MPG saw no change in price, but 26MPG lost 10¢ and 30MPG ended 8¢ lower.
50,148 bales were offered to the trade this week and with a pass-in rate of 7.4%; 46,457 were sold. This figure isn’t unusual for post-Easter recess, coming in line with the volume sold post-Easter last year.
The analysis done by Andrew Woods on Mecardo earlier this week (read here) sheds some light on the recent price moves in the wool market. Volumes have tightened up across all micron categories, but broader merino volumes are suffering the biggest falls. This is offering some price support and will continue to pressure merino micron price differentials to narrow.Next week
A total of 46,411 bales are rostered for sale in next week’s auction with all centres selling on Tuesday and Wednesday.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Nutrien Ag Solutions, 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.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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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.