While prices could be stronger, there is much to be said about the volumes that are flowing through the system. For April, in the 16.5 to 21.5 MPG range (where the bulk of merino wool sits), just 9,300 bales (or 9.3%) of the 100,000 bales offered were passed in. By contrast, in the 23 to 26 MPG, 21% was passed in (although on much lower volumes of wool offered), while in the stronger Cross Bred lots 11.3% was passed in out of the 13,642 bales offered.
The Eastern Market Indicator (EMI) lifted for the week closing at 1302 ȼ/kg, up 12 ȼ/kg on last week’s level. Whilst the Australian dollar was marginally stronger (up to 0.661 USȼ), the impacts were minimal on the wool market, as the EMI saw a 4ȼ increase when expressed in $US, finishing the week at 860 USȼ/kg.
The Western Market Indicator (WMI) rose strongly for the week, it closed the week at 1472ȼ/kg, an increase of 30ȼ on last week’s level. In the west, on the final selling day, 23% of the fleece lots were withdrawn before the sale, influencing the stronger demand for the remaining wool offered.
Crossbred markets were steady this week, with little change across the MPGs. The 28 MPG fleece in Melbourne was unchanged at 335 ȼ/kg, while the 30 MPG lifted just 2ȼ to 307 ȼ/kg.
Eastern market cardings were quoted slightly weaker 7ȼ and 10ȼ in Sydney (831¢) and Melbourne (834¢) respectively. The west lost ground, down 20ȼ to finish the week at 819¢.
A smaller offering of 38,505 bales was offered this week. With a pass-in rate of 9.2% resulted in the weekly clearance of 34,967 bales: a decrease of 11,450 bales compared to last week.
This week on Mecardo Andrew Woods looks at the reason why the AWEX EMI should be used sparingly to monitor prices for specific micron categories. The message in this article is the same as it was in the February article. The Australian wool industry is blessed with good, reliable micron price guides (MPG) which are a better tool to monitor market levels than the EMI, which is only a general overarching indicator.
The week ahead….
Next week again more than 40,000 bales are scheduled for auction. All three centres will sell on Tuesday & Wednesday.
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.
Another strong clearance
The Eastern Market Indicator (EMI) lifted for the week closing at 1302 ȼ/kg, up 12 ȼ/kg on last week’s level. Whilst the Australian dollar was marginally stronger (up to 0.661 USȼ), the impacts were minimal on the wool market, as the EMI saw a 4ȼ increase when expressed in $US, finishing the week at 860 USȼ/kg.
The Western Market Indicator (WMI) rose strongly for the week, it closed the week at 1472ȼ/kg, an increase of 30ȼ on last week’s level. In the west, on the final selling day, 23% of the fleece lots were withdrawn before the sale, influencing the stronger demand for the remaining wool offered.
Crossbred markets were steady this week, with little change across the MPGs. The 28 MPG fleece in Melbourne was unchanged at 335 ȼ/kg, while the 30 MPG lifted just 2ȼ to 307 ȼ/kg.
Eastern market cardings were quoted slightly weaker 7ȼ and 10ȼ in Sydney (831¢) and Melbourne (834¢) respectively. The west lost ground, down 20ȼ to finish the week at 819¢.
A smaller offering of 38,505 bales was offered this week. With a pass-in rate of 9.2% resulted in the weekly clearance of 34,967 bales: a decrease of 11,450 bales compared to last week.
This week on Mecardo Andrew Woods looks at the reason why the AWEX EMI should be used sparingly to monitor prices for specific micron categories. The message in this article is the same as it was in the February article. The Australian wool industry is blessed with good, reliable micron price guides (MPG) which are a better tool to monitor market levels than the EMI, which is only a general overarching indicator.
The week ahead….
Next week again more than 40,000 bales are scheduled for auction. All three centres will sell on Tuesday & Wednesday.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
Categories
Have any questions or comments?
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
Sheep meat price volatility
The drop in sheep meat prices in 2023 came as an unwelcome shock after the better part of a decade of rising prices. This article
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.