The Eastern Market Indicator (EMI) rose by 37¢ to 1890¢ (AUD) this week, with substantial increases of more than 73¢ for the finer end of the spectrum, 16.5 and 17 MPG. The bale offering increased by 6% to 25,021 from last week’s low. Despite the increased offering, the 23,926 bales sold this week was 24% below the average for the past 12 months. Given that supply is remaining relatively low on a weekly basis and prices have improved post recess both buyers and sellers were keen and the pass in rate remains on the lower end at 4.4%.
Local Market Indicators saw Sydney rise by 43¢ to 1961¢, Melbourne was up by 32¢ to 1842¢ and Fremantle saw a 37¢ lift to 2078¢.
In Sydney, as mentioned, the finer merino MPG’s saw significant rises with 17 MPG up by 80¢ to 2638¢ as did 18 MPG, which gained 75¢ to 2542¢. 19 MPG also saw a good lift, up by 57¢ to 2322¢ and 20 MPG increased by 50¢ to 2142¢. Crossbred wool 28 MPG saw a 28¢ gain to 863¢ and cardings was up by 10¢ to 1194¢.
In Melbourne, 17.5 MPG saw an 86¢ increase to 2590¢, 18.5 MPG was up by 73¢ to 2449¢ and 19.5 lifted by 40¢ to 2233¢. The 28 MPG rose by 25¢ to 860¢, 30 MPG was up by 48¢ to 763¢ and cardings gained 8¢ to 1090¢.
In Fremantle, 18 MPG jumped by 46¢ to 2488¢, 19 MPG increased by 36¢ to 2318¢ and 21 MPG saw a 60¢ gain to 2090¢. Cardings fell by 5¢ which was the only decline on the board this week.
This week in Mecardo, Andrew Woods explores the recent premiums paid in Australian auctions for RWS accredited wool – noting that premiums are fairly consistent for crossbred and merino wool at around 100¢ for merino and between 80-100¢ for crossbred wool despite the volatility in underlying prices (article available here).
Buyers keen on another low offering
Next week
Next week the bale offering is set to decrease by 5% to 23,851. Auctions are scheduled for Tuesday and Wednesday in Sydney and Melbourne and on Tuesday only in Fremantle.
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Data sources: MLA, Mecardo
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Fibre prices
A reader has asked whether synthetic fibre prices have settled down, implying there is an equilibrium price level for these fibres. That implication is not
Price stable as offering declines
A lower bale offering helped the Australian wool market set a very modest overall price rise, with the Eastern Market Indicator (EMI) up by 1¢
Merino supply and price
Supply is the topic of the moment in discussions about the greasy wool market, or more accurately low supply and its impact on price. Supply
Sellers unwilling to part with wool at current market
This week prices fell in the Australian wool market and pass in rates remain high as volumes have been slowly creeping back up to 30,000
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