And they’re off for the 2023/24 wool season, and all categories (including crossbreds) have jumped strongly. A fair offering sold well as pass-in rates were low in an improving market.
Improvement in all fine and broad micron price categories (MPGs) was evident across all three markets. The Eastern Market Indicator (EMI) has finished the first week of the 2023/24 season 38ȼ higher to 1162ȼ/kg, which, when expressed in US dollars, now sits at 777 USȼ/kg (up 29 US ȼ).
Demand in Sydney was strong as pricing improved across all categories and clearance levels were high, the pass-in rate this week averaging 3.7%. 17.5 MPG improved by 72ȼ to 1720ȼ/kg and 19.5 MPG bounced 58ȼ to 1415ȼ/kg. Melbourne followed suit with positive price movements across fine and broader categories. The best on ground was 19MPG up 77ȼ to 1479ȼ/kg and 16.5 MPG jumped back above the 2000ȼ/kg mark to finish at 2043ȼ/kg (an improvement of 58 ȼ).
Across the Nullabor, pre-sale withdrawals (32.8% on Tuesday and 20.5 % Wednesday) helped support pricing in the first week of the market. The Western Market Indicator (WMI) was up 49ȼ to 1320ȼ/kg in what was a positive week. 18MPG jumped 26ȼ to 1600ȼ/kg and 21MPG increased 69ȼ to 1321ȼ/kg.
In what was a refreshing change of pace for a market stuck in the doldrums, some crossbred wool categories saw a double-digit price improvement. In Sydney, 28MPG was up 12ȼ to 310ȼ/kg and in Melbourne, 26MPG improved 24 ȼ to 544 ȼ/kg. Sydney cardings rose 4ȼ to 752ȼ/kg, Melbourne carding lost 2ȼ to 706ȼ/kg and Fremantle cardings lept 15ȼ to 701ȼ/kg.
The weeks offering of 36,159 bales were well met by the market, with pass-in rates relatively low at 6.4% in an appreciating market for sellers. 33, 836 bales were sold nationally this week roughly 6% lower than last season’s weekly average.
This week on Mecardo, Andrew Woods revisits AWTA volumes to look at supply by micron categories (read here). Overall volumes were up by 3.9% (farm bales) and the Merino clip skewed finer for the 2022/23 season, helping to explain the weakness seen in fine Merino prices of late.
Next week
44,452 Bales are scheduled for next week nationally, and sellers will be relieved to see what eventuated in the market this week. Whether the market’s appetite for large volumes will continue is yet to be revealed.
The higher Australian dollar has prompted questions about the likely impact on local extensive agricultural commodity prices. Mecardo has covered this topic before. The relationship
The Australian wool market extended its winning streak this week, with the Eastern Market Indicator climbing 16¢ to finish at 1,693¢/kg ahead of next week’s
Greasy wool prices have increased markedly this season, in the absence of any substantial improvement in macroeconomic indicators or major apparel fibre prices, the usual
The Australian wool market recovered from the losses recorded in the previous series, with prices lifting across both selling days. The Eastern Market Indicator rose
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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.
Crossbreds up double digits
Improvement in all fine and broad micron price categories (MPGs) was evident across all three markets. The Eastern Market Indicator (EMI) has finished the first week of the 2023/24 season 38ȼ higher to 1162ȼ/kg, which, when expressed in US dollars, now sits at 777 USȼ/kg (up 29 US ȼ).
Demand in Sydney was strong as pricing improved across all categories and clearance levels were high, the pass-in rate this week averaging 3.7%. 17.5 MPG improved by 72ȼ to 1720ȼ/kg and 19.5 MPG bounced 58ȼ to 1415ȼ/kg. Melbourne followed suit with positive price movements across fine and broader categories. The best on ground was 19MPG up 77ȼ to 1479ȼ/kg and 16.5 MPG jumped back above the 2000ȼ/kg mark to finish at 2043ȼ/kg (an improvement of 58 ȼ).
Across the Nullabor, pre-sale withdrawals (32.8% on Tuesday and 20.5 % Wednesday) helped support pricing in the first week of the market. The Western Market Indicator (WMI) was up 49ȼ to 1320ȼ/kg in what was a positive week. 18MPG jumped 26ȼ to 1600ȼ/kg and 21MPG increased 69ȼ to 1321ȼ/kg.
In what was a refreshing change of pace for a market stuck in the doldrums, some crossbred wool categories saw a double-digit price improvement. In Sydney, 28MPG was up 12ȼ to 310ȼ/kg and in Melbourne, 26MPG improved 24 ȼ to 544 ȼ/kg. Sydney cardings rose 4ȼ to 752ȼ/kg, Melbourne carding lost 2ȼ to 706ȼ/kg and Fremantle cardings lept 15ȼ to 701ȼ/kg.
The weeks offering of 36,159 bales were well met by the market, with pass-in rates relatively low at 6.4% in an appreciating market for sellers. 33, 836 bales were sold nationally this week roughly 6% lower than last season’s weekly average.
This week on Mecardo, Andrew Woods revisits AWTA volumes to look at supply by micron categories (read here). Overall volumes were up by 3.9% (farm bales) and the Merino clip skewed finer for the 2022/23 season, helping to explain the weakness seen in fine Merino prices of late.
Next week
44,452 Bales are scheduled for next week nationally, and sellers will be relieved to see what eventuated in the market this week. Whether the market’s appetite for large volumes will continue is yet to be revealed.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, AWI, Mecardo
Categories
Have any questions or comments?
Will a rising Australian dollar impact commodity prices?
The higher Australian dollar has prompted questions about the likely impact on local extensive agricultural commodity prices. Mecardo has covered this topic before. The relationship
Market momentum persists ahead of Chinese New Year
The Australian wool market extended its winning streak this week, with the Eastern Market Indicator climbing 16¢ to finish at 1,693¢/kg ahead of next week’s
Broad merino price, volume and price ratio
Greasy wool prices have increased markedly this season, in the absence of any substantial improvement in macroeconomic indicators or major apparel fibre prices, the usual
Wool market finds its footing
The Australian wool market recovered from the losses recorded in the previous series, with prices lifting across both selling days. The Eastern Market Indicator rose
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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.
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.