A cautious opening eventually became a solid upward trend in the wool market this week. AWEX reported the strong close in the West on the first day provided the momentum for a solid final day in the East, culminating in a stronger market across the board.
The Eastern Market Indicator (EMI) was 14ȼ better, or plus
1.21% to sit at 1172 ȼ/kg. The lift in
the EMI looked like a surge when compared to the previous 2-week period where
incremental daily increases saw a total of just 17ȼ lift. The EMI expressed in US dollars also
improved, gaining 8ȼ to 763 USȼ.
It was the Merino section that led the market, with gains of
22ȼ to 34ȼ reported, most notably were the 17.0 to 20.0 MPG categories, where
in Melbourne the increases were generally positive by around 2.0%.
Crossbreds were at best “solid”, with minimal price movements,
while the Cardings Indicators improved 7ȼ & 9ȼ in Sydney & Melbourne,
with a 1ȼ gain in Fremantle.
The Pass-in rate fell to 4.4%, the lowest % AWEX has reported
since June 2021, and with a smaller offering just 35,644 bales were cleared.
This week on Mecardo, Andrew Woods provides an update (read
here) on strength premiums and discounts. These are subject to the supply
of low tensile strength wool, and the supply of point of break in the middle of
the staple. Consequently, there will be seasons when the price effect of staple
strength is quite high, compared to the current season where the effect is
minimal. The five- and ten-year medians allow us to look through these seasonal
effects to see what the longer-term impact on price is.
The week ahead….
Next week Melbourne sells on Wednesday & Thursday, while Sydney and Fremantle sales are listed for Tuesday & Wednesday. An increased offering is rostered, with 42,394 bales listed nationally, 22,824 of these bales are in Melbourne sales.
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
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
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
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.
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.
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.
Across the week improvement in wool
The Eastern Market Indicator (EMI) was 14ȼ better, or plus 1.21% to sit at 1172 ȼ/kg. The lift in the EMI looked like a surge when compared to the previous 2-week period where incremental daily increases saw a total of just 17ȼ lift. The EMI expressed in US dollars also improved, gaining 8ȼ to 763 USȼ.
It was the Merino section that led the market, with gains of 22ȼ to 34ȼ reported, most notably were the 17.0 to 20.0 MPG categories, where in Melbourne the increases were generally positive by around 2.0%.
Crossbreds were at best “solid”, with minimal price movements, while the Cardings Indicators improved 7ȼ & 9ȼ in Sydney & Melbourne, with a 1ȼ gain in Fremantle.
The Pass-in rate fell to 4.4%, the lowest % AWEX has reported since June 2021, and with a smaller offering just 35,644 bales were cleared.
This week on Mecardo, Andrew Woods provides an update (read here) on strength premiums and discounts. These are subject to the supply of low tensile strength wool, and the supply of point of break in the middle of the staple. Consequently, there will be seasons when the price effect of staple strength is quite high, compared to the current season where the effect is minimal. The five- and ten-year medians allow us to look through these seasonal effects to see what the longer-term impact on price is.
The week ahead….
Next week Melbourne sells on Wednesday & Thursday, while Sydney and Fremantle sales are listed for Tuesday & Wednesday. An increased offering is rostered, with 42,394 bales listed nationally, 22,824 of these bales are in Melbourne sales.
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Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
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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
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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.
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.
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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.