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 In the west, on the final selling day, 23% of the fleece lots were withdrawn before the sale, influencing the stronger demand for the remaining wool offered.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.
With the eternal battle between enterprises for farm resources continuing, it is interesting to stand back and see what has changed and what hasn’t between
Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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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.
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
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Have any questions or comments?
History of the Southern hemisphere sheep flock
The recent AWPFC forecast for wool production to be down to levels of the early 1920s (and 2019) warrants a look at what has been
Wool production changes across Australia’s sheep regions
With the eternal battle between enterprises for farm resources continuing, it is interesting to stand back and see what has changed and what hasn’t between
More of the same for wool
Compared to last week it was a similar offering, same pass-in rate, and limited market moves. The wool market delivered again on its 2024 theme
Lower volumes and finer wools
Change in wool supply is always an issue with regard to the relative price of wool of varying quality (be that breed, micron, staple length,
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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.