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.

commodity conversations banner

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.

Have any questions or comments?

We love to hear from you!
Print This Post

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: AWEX, AWI Mecardo

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services

Have any questions or comments?

We love to hear from you!
Warrnambool woolen mill
Wool

Industrial commodities

Wool is essentially a feedstock for an industrial process, with fashion tacked on the end of the supply chain. That is not how the marketers

Read More »
easter shaun the sheep
Wool

Solid market before Easter break

The wool market finished in positive territory in the lead-up to the traditional one-week recess over easter. Exporters competed strongly to fill orders for immediate

Read More »
Wool clip on table
Wool

Merino micron price curves

Premiums and discounts in the wool market are constantly on the move, responding to changes in supply and demand. The supply changes tend to be

Read More »
Wool

Au$ assists wool market

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

Read More »

Don’t have an account with us? Join free.

You can have full premium access to all of our content with a monthly or annual subscription. 

Alternatively, create a free account to access our Insights blog and two free premium article a month!

Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
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.

Photo of a farmer surrounded by Merino sheep in dusty yards
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. 

Image of harvested grain pouring into a chaser bin
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.