As we welcome the markets and our readers back from the wool market recess, the Eastern Market Indicator (EMI) has missed the jump, ending the week at its lowest point for the calendar year. Despite the finer end of the market hitting the ground running, vegetable matter and length are impacting broader microns.
The EMI fell this week by 11ȼ to 1289 ȼ/kg, which is a low point for the calendar year. Exchange rates are also playing a part as the Aussie dollar trades at 67.02 USȼ and the EMI expressed in USȼ is down 14ȼ to 864 US ȼ/KG.
The East Coast returned from the recess to large volumes and a market that was, for the most part, trending down as a result. Superfine wool in Sydney bucked the trend however, as 16.5 MPG finished the week 34ȼ higher at 2372 ȼ/kg, and 17MPG rose 12ȼ to 2342 ȼ/kg. Broader microns did not find the same favour with buyers, as lots were heavily scrutinised for their vegetable matter (VM) content and length. 18 MPG in Melbourne fell 41ȼ to 1836ȼ/kg and 18.5 MPG in Sydney dropped 52ȼ to 1702ȼ/kg, the biggest falls of the week.
The Western market hit the ground running post-recess as all MPG categories saw price increases this week. At the finer end, 18 MPG grew 6ȼ to 1829 ȼ/kg and 19MPG and 19.5 MPG were both up 26ȼ, ending the week at 1634 ȼ/kg and 1575 ȼ/kg respectively. All considered, the Western Market Indicator finished the week up modestly with a 3 ȼ increase to 1442 ȼ/kg.
Crossbred wool continues to bounce along the bottom as 32MPG fleece in Melbourne increased 3ȼ to 250 ȼ/kg and 28MPG in Sydney lost 7ȼ to 323 ȼ/kg. As referenced this week in the monthly Mecardo Percentile article, Southern market crossbred wool prices sit in the bottom 10% of prices seen since 2010.
Eastern market cardings continued a downward trend, down 6ȼ in Sydney (838) and 15 ȼ in Melbourne (844). Western Cardings followed suit, down 9ȼ to 839ȼ /kg.
Following a recess week, auction volumes were always going to be towards the pointy end as the market cleared 46,417 of the 52,951 bales offered. With the pass-in rate this week of 12.3% matching the pass-in rate for the season thus far, it’s fair to say the market took the vast volumes in their stride.
This week in Mecardo, Andrew Woods takes us through a longer-term view of Fine Merino prices. Micron premiums have historically been volatile, and there is no reason to suspect this will change. However, the premiums seen in the market in recent seasons suggest that demand is starting to catch up with the strong increase in supply seen in the two decades from the mid-1990s onwards.
The week ahead….
We expect a relatively more timid offering as we get back into the swing of things next week, with an offering of 44,901 bales scheduled. Sales next week will occur on Wednesday and Thursday as the nation takes pause on Tuesday to pay its respects on Anzac Day.
Wool markets opened to underwhelming demand across all centres as the trade approaches Winter and the end of the 2023/24 selling season. Although it is
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
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.
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.
EMI misses the jump
The EMI fell this week by 11ȼ to 1289 ȼ/kg, which is a low point for the calendar year. Exchange rates are also playing a part as the Aussie dollar trades at 67.02 USȼ and the EMI expressed in USȼ is down 14ȼ to 864 US ȼ/KG.
The East Coast returned from the recess to large volumes and a market that was, for the most part, trending down as a result. Superfine wool in Sydney bucked the trend however, as 16.5 MPG finished the week 34ȼ higher at 2372 ȼ/kg, and 17MPG rose 12ȼ to 2342 ȼ/kg. Broader microns did not find the same favour with buyers, as lots were heavily scrutinised for their vegetable matter (VM) content and length. 18 MPG in Melbourne fell 41ȼ to 1836ȼ/kg and 18.5 MPG in Sydney dropped 52ȼ to 1702ȼ/kg, the biggest falls of the week.
The Western market hit the ground running post-recess as all MPG categories saw price increases this week. At the finer end, 18 MPG grew 6ȼ to 1829 ȼ/kg and 19MPG and 19.5 MPG were both up 26ȼ, ending the week at 1634 ȼ/kg and 1575 ȼ/kg respectively. All considered, the Western Market Indicator finished the week up modestly with a 3 ȼ increase to 1442 ȼ/kg.
Crossbred wool continues to bounce along the bottom as 32MPG fleece in Melbourne increased 3ȼ to 250 ȼ/kg and 28MPG in Sydney lost 7ȼ to 323 ȼ/kg. As referenced this week in the monthly Mecardo Percentile article, Southern market crossbred wool prices sit in the bottom 10% of prices seen since 2010.
Eastern market cardings continued a downward trend, down 6ȼ in Sydney (838) and 15 ȼ in Melbourne (844). Western Cardings followed suit, down 9ȼ to 839ȼ /kg.
Following a recess week, auction volumes were always going to be towards the pointy end as the market cleared 46,417 of the 52,951 bales offered. With the pass-in rate this week of 12.3% matching the pass-in rate for the season thus far, it’s fair to say the market took the vast volumes in their stride.
This week in Mecardo, Andrew Woods takes us through a longer-term view of Fine Merino prices. Micron premiums have historically been volatile, and there is no reason to suspect this will change. However, the premiums seen in the market in recent seasons suggest that demand is starting to catch up with the strong increase in supply seen in the two decades from the mid-1990s onwards.
The week ahead….
We expect a relatively more timid offering as we get back into the swing of things next week, with an offering of 44,901 bales scheduled. Sales next week will occur on Wednesday and Thursday as the nation takes pause on Tuesday to pay its respects on Anzac Day.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
Categories
Have any questions or comments?
Withdrawals up as winter approaches
Wool markets opened to underwhelming demand across all centres as the trade approaches Winter and the end of the 2023/24 selling season. Although it is
International sheep meat supply and lamb prices
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
Merino market upswing carries on in the East
The positive run continued in the Merino market this week in the east, however, the west failed to sustain the momentum and gave way. As
Sheep meat price volatility
The drop in sheep meat prices in 2023 came as an unwelcome shock after the better part of a decade of rising prices. This article
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
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.