Wool clip on table

There was a cautious opening to this week’s market, and while some types gained support as the week unfolded, it was a mixed bag. Finer MPGs (17 & 17.5 MPG) ended the week higher (up 3 & 4ȼ respectively), with broader MPGs lower. Price falls in the Merino fleece sector produced this week's 4ȼ reduction in the EMI to 1,144 ȼ /kg clean. However, currency movements did play a role as the EMI in USD rose 2ȼ.

Brokers reported some exceptional sales in Melbourne for Tasmanian-based lots with RWS accreditation being keenly sought out for specialist orders.

AWEX reported large falls across the merino MPGs in Fremantle, with the Western Regional Indicator dropping 27 cents to 1,272 ȼ /kg clean with the Western Merino Carding Indicator bucking the trend and lifting 17 cents to 739 ȼ /kg clean.

Crossbred types were largely steady, however poorly prepared crossbred lots were ignored, the finer (26 – 30 MPG) lots slipped 2 to 5ȼ as the 32 MPG gained 3 ȼ.

The national offering increased this week with 40,520 bales from Australia topped up with 1,767 bales of NZ origin. The national pass-in rate increased to 9.7%, particularly noticeable in WA where 17.4% failed to meet sellers’ expectations.

Meat & Livestock Australia (MLA) reported that “The Australian wool market, measured by the Eastern Market Indicator (EMI), is outperforming all sheep and lamb indicators this year. The EMI has fallen 12% over the last 12 months; in comparison, the heavy lamb (the best-performing ovine indicator) has fallen 38%.” MLA went on to say that they expect this will result in a reversal of the flock demographics and expect the number of merino ewes to start increasing.

This week on Mecardo, Andrew Woods investigates how recent falls in livestock markets stack up against other historical price falls in a peak-to-trough analysis. With average micron merino prices down 40% on 2018 levels, this fall in the market is appreciably less than the mid-1970s and early 1991 (post reserve price scheme).

Next week

Next week’s sales will occur over three days due to public holidays, with 40,458 bales currently rostered for sale and a designated Superfine sale in Sydney.

Have any questions or comments?

We love to hear from you!

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!
Flock of merino sheep close up

The luxury goods complex

Fine wine is a luxury item with, it turns out, some quite good indicator series for the past couple of decades. In this article, we

Read More »

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

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

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.