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 In the west, on the final selling day, 23% of the fleece lots were withdrawn before the sale, influencing the stronger demand for the remaining wool offered.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 production volumes have been under strong downward pressure during the past year as a combination of dry seasonal conditions, increased costs, and low prices
Despite early buyer interest in the reduced supply, softer demand for finer Merino weighed on the market, while the crossbreds and courser segments showed resilience.
Non-mulesed accreditation is a stepping stone to qualification of various quality schemes, which in turn are stepping stones to premiums in the greasy wool market
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.
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.
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?
Fine wool slips, broader types soften
The wool market edged lower this week, with the EMI falling 2¢ to 1,197¢/kg, in what proved to be a tale of three markets in
Merino and non-merino wool volumes in Australia
Wool production volumes have been under strong downward pressure during the past year as a combination of dry seasonal conditions, increased costs, and low prices
Crossbreds outshine merino in tight week
Despite early buyer interest in the reduced supply, softer demand for finer Merino weighed on the market, while the crossbreds and courser segments showed resilience.
State of origin in non-mulesed wool
Non-mulesed accreditation is a stepping stone to qualification of various quality schemes, which in turn are stepping stones to premiums in the greasy wool market
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.
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.
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.