The Eastern Market Indicator (EMI) has failed to post a lift for the 9th consecutive week, losing 13ȼ this week, to 1306ȼ/kg, the lowest level for 16 months. The Aussie dollar rose (+ 0.21ȼ) to 0.67US and in US dollar terms, the EMI also fell, by 6ȼ to 880ȼ/kg.
This week can again be characterised by stronger bidding sentiment for the medium/broader type wools while not so much for the finer microns. 19 -22 MPG’s were more positive, posting similar results to last week, with movements ranging from +11 to -15ȼ across the three selling centres.
The finer microns were hammered in the past two weeks with the 17.5 & finer MPG’s falling between 60 to 135ȼ this week, whilst the 18 – 19 MPG’s didn’t fall as harshly, dropping between 9 to 60ȼ. The 17 MPG in Melbourne for example, has dropped 272ȼ (-10.3%) in the past three weeks to where it sits now at 2,363ȼ/kg, closing the gap towards the 21 south MPG. (figure 2)
Over in Fremantle, due to their wool supply being skewed more towards the medium type wools, the Western Market Indicator (WMI) indicator didn’t fall as much as its eastern counterparts, finishing the week 6ȼ lower at 1447ȼ/kg.
Crossbreds were mixed again, with minimal price rises & falls. Cardings had a strong week in Melbourne and Fremantle lifting 11 & 21ȼ respectively, while in Sydney the indicator dropped just 1ȼ.
Similar to last week’s figures, there were just over 37,000 bales on offer this week and the pass-in rate was slightly higher at 12%, resulting in 33,177 bales sold. Average bales sold this season is slowly falling back in line with last season’s average (36,000).
Andrew Woods took a closer look at fine wool prices over the past twenty years, in this case the 16 micron, and why some types of finer wool, particularly the ‘poorer quality types’, are trending downwards at the moment. He also examined combing premiums to carding prices, which identified some more possible bad news for the finer wool types, with some possible downside risk flagged for the 16.5 micron fleece indicator he chose to look at in his article.
Fine wools weighed down
The Eastern Market Indicator (EMI) has failed to post a lift for the 9th consecutive week, losing 13ȼ this week, to 1306ȼ/kg, the lowest level for 16 months. The Aussie dollar rose (+ 0.21ȼ) to 0.67US and in US dollar terms, the EMI also fell, by 6ȼ to 880ȼ/kg.
This week can again be characterised by stronger bidding sentiment for the medium/broader type wools while not so much for the finer microns. 19 -22 MPG’s were more positive, posting similar results to last week, with movements ranging from +11 to -15ȼ across the three selling centres.
The finer microns were hammered in the past two weeks with the 17.5 & finer MPG’s falling between 60 to 135ȼ this week, whilst the 18 – 19 MPG’s didn’t fall as harshly, dropping between 9 to 60ȼ. The 17 MPG in Melbourne for example, has dropped 272ȼ (-10.3%) in the past three weeks to where it sits now at 2,363ȼ/kg, closing the gap towards the 21 south MPG. (figure 2)
Over in Fremantle, due to their wool supply being skewed more towards the medium type wools, the Western Market Indicator (WMI) indicator didn’t fall as much as its eastern counterparts, finishing the week 6ȼ lower at 1447ȼ/kg.
Crossbreds were mixed again, with minimal price rises & falls. Cardings had a strong week in Melbourne and Fremantle lifting 11 & 21ȼ respectively, while in Sydney the indicator dropped just 1ȼ.
Similar to last week’s figures, there were just over 37,000 bales on offer this week and the pass-in rate was slightly higher at 12%, resulting in 33,177 bales sold. Average bales sold this season is slowly falling back in line with last season’s average (36,000).
Andrew Woods took a closer look at fine wool prices over the past twenty years, in this case the 16 micron, and why some types of finer wool, particularly the ‘poorer quality types’, are trending downwards at the moment. He also examined combing premiums to carding prices, which identified some more possible bad news for the finer wool types, with some possible downside risk flagged for the 16.5 micron fleece indicator he chose to look at in his article.
The week ahead….
With plenty of negative macro-economical signals putting downward pressure on global markets, there is uncertainty about how consumer discretionary spending will be impacted, and demand for wool. Next week there’s 39,025 bales on offer for sale across the 3 main selling centres.
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?
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
Exchange rate pain is wool markets gain
Sydney and Fremantle markets made up for lost time with big improvements across both the broad and merino fleece categories this week. The lower Aussie
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.