The wool market remains subdued although an easing in the Au$ this week assisted the market to post a modest rise.
Despite the relatively stable market, concerns are emerging that logistics is fast becoming a sticking point for wool exporters and warnings that this may impact competition in the saleroom, if not soon remedied.
The Eastern Market Indicator lifted 8¢ for the week to finish at 1285¢. In US terms, thanks to a 2.9% fall in the Aussie dollar, the EMI gave up 23 US¢, to finish at 977¢ cushioning prices received by sellers.
At Fremantle sales, the WMI followed the national trend and lifted 13 cents to finish at 1346, with all categories posting gains of 5 to 18 cents.
Finer types received the strongest interest and posted rises in the range of 5 to 15 cents, with Sydney leading the way. There was a more mixed result in Melbourne with the 20 to 22 MPG losing ground slightly.
The Crossbred offering held steady with the 26,28 & 32 MPG’s all up slightly, while 30 MPG was marginally down (-3 cents).
Cardings again posted a solid result, with Sydney +12 cents, Melbourne -5 & Fremantle strongly up 37 cents.
A reduced offering of 38,564 bales came forward, and with a national pass-in rate of 9.4%, 34,956 bales sold this week. This is the lowest clearance for 2021, however still marginally above the average for the season to date.
On the logistics front, exporters are reporting that delays to shipping stems are impacting on delivery to destination, which in turn continues to tie up exporters’ available funds to trade. According to reports, there is little certainty of boxed wool leaving ports, with export-ready containers suddenly jettisoned onto revised schedules and advised that their new schedule is “subject to change”. This situation has the potential to reduce competition in the auction room if it is not soon corrected.
This week on Mecardo, Andrew woods took a look at Quality schemes in the Australian wool industry. The challenge with quality schemes is to gain the confidence of the supply chain and then to deliver enough volume to enable the supply chain to plan and acquire accredited wool for a wide range of yarns and fabrics, which is no easy feat. It’s still early days for these schemes, with key merino micron category volumes still relatively small compared to overall volumes.
The week ahead….
Next week’s offerings is listed at 48,829 bales over Tuesday & Wednesday as we move into the traditional one-week Easter recess, with sales listed to resume on week beginning 12th April.
Premiums for quality scheme-accredited wool continue in the greasy wool market. This article takes a look at RWS premiums during the past three months. Calculating
Unfortunately, the second week of the new selling season resulted in a continuation of the opening weeks’ sentiment. The market struggled with the twin issues
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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.
Au$ assists wool market
The Eastern Market Indicator lifted 8¢ for the week to finish at 1285¢. In US terms, thanks to a 2.9% fall in the Aussie dollar, the EMI gave up 23 US¢, to finish at 977¢ cushioning prices received by sellers.
At Fremantle sales, the WMI followed the national trend and lifted 13 cents to finish at 1346, with all categories posting gains of 5 to 18 cents.
Finer types received the strongest interest and posted rises in the range of 5 to 15 cents, with Sydney leading the way. There was a more mixed result in Melbourne with the 20 to 22 MPG losing ground slightly.
The Crossbred offering held steady with the 26,28 & 32 MPG’s all up slightly, while 30 MPG was marginally down (-3 cents).
Cardings again posted a solid result, with Sydney +12 cents, Melbourne -5 & Fremantle strongly up 37 cents.
A reduced offering of 38,564 bales came forward, and with a national pass-in rate of 9.4%, 34,956 bales sold this week. This is the lowest clearance for 2021, however still marginally above the average for the season to date.
On the logistics front, exporters are reporting that delays to shipping stems are impacting on delivery to destination, which in turn continues to tie up exporters’ available funds to trade. According to reports, there is little certainty of boxed wool leaving ports, with export-ready containers suddenly jettisoned onto revised schedules and advised that their new schedule is “subject to change”. This situation has the potential to reduce competition in the auction room if it is not soon corrected.
This week on Mecardo, Andrew woods took a look at Quality schemes in the Australian wool industry. The challenge with quality schemes is to gain the confidence of the supply chain and then to deliver enough volume to enable the supply chain to plan and acquire accredited wool for a wide range of yarns and fabrics, which is no easy feat. It’s still early days for these schemes, with key merino micron category volumes still relatively small compared to overall volumes.
The week ahead….
Next week’s offerings is listed at 48,829 bales over Tuesday & Wednesday as we move into the traditional one-week Easter recess, with sales listed to resume on week beginning 12th April.
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Data sources: AWEX, AWI Mecardo
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Have any questions or comments?
Dip in dollar drives demand
The bounce back in the wool market this week was largely driven by improvement in the 18-19 micron range of price indicators as buyers continue
Update on RWS premiums
Premiums for quality scheme-accredited wool continue in the greasy wool market. This article takes a look at RWS premiums during the past three months. Calculating
No warmth for this weeks wool market
Unfortunately, the second week of the new selling season resulted in a continuation of the opening weeks’ sentiment. The market struggled with the twin issues
How is cotton going
The Australian cotton crop has a value in the order of three billion dollars and is the larger sibling to the older Australian textile of
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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.
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.