Just 8,431 bales were offered in the Northern
market this week which contributed to the relatively low 7% pass-in rate. Bidding held firmer at the broader end of the
offering with 17MPG losing 61ȼ to 1807ȼ/kg and 18MPG improving 16ȼ to 1632ȼ/kg. Fine wool buyers might have their eye toward
the designated superfine sale next week.
In Melbourne, Merino fleece demand was
mixed with desirable wool holding firm but the pass-in rate for Merino fleece
averaged 14.4% for the week, as reports cite less than ideal measurements
amongst the offering. 18MPG lost 30ȼ to 1,608ȼ/kg and 21MPG eased 5ȼ to 1317 ȼ/kg.
Out West, the Western Market Indicator (WMI)
sits at 1301 ȼ/kg, a 5ȼ reduction week on week. Finer micron category supply
dominated the offering, resulting in the decline of Merino fleece categories
but a minor appreciation in price at the broader end. 18MPG lost 28ȼ to 1,569ȼ/kg
and 21MPG improved 3ȼ to 1326ȼ/kg.
Auction offering volumes have been
declining the last few weeks, and the market has depreciated since the
beginning of the calendar year. Whilst
it would appear the foot is off the gas for wool markets for now, the data
indicates that wool is still in a great spot.
The 2023/24 seasons offering is 5.9% higher than the same time last
season. Despite supply being ahead of
schedule, buyers have not been shy to come to the party, as the pass-in rate is
averaging just 8.3% for the season (12.3% in 2022/2023). The average weekly bales sold are sitting at
39K bales, almost 2,000 higher than last season’s weekly average.
Foot off the gas?
Next week
Volumes are already ramping up next week ahead of a seasonal period of elevated supply (Figure 2.) as 44K bales are scheduled for auction next week.
Sydney has a designated superfine sale next week.
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Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, AWI, Mecardo
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