Merino sheep

Another large offering tested the market with moderate falls across the week, however of note was the final day of sales when only Melbourne participated. This saw a softer opening on the day, however, it was met with strong resistance from sellers with high pass-in rates. This resulted in renewed buying strength as exporters struggled to fill their purchasing needs and the market lifted.

This week the Eastern Market Indicator (EMI) lost 10ȼ to settle at 1364ȼ/kg. The Australian dollar remained steady at US$0.68, causing the EMI when expressed in US$ to slide 13ȼ/kg to 932ȼ/kg (US).  

The reaction by buyers to lift bids on the final day when growers reduced supply (AWEX reported in early sales 40% of wool was passed in), signals that processors have a need to continue buying. It would suggest stocks on hand are not sufficient and supply coming forward is essential to maintain the supply of greasy wool to mills.

The Western market sellers were also resistant, with 25% of the offering passed, and a significant 32% of the fleece wool offering not meeting sellers’ reserves. The Western Market Indicator (WMI) finished the week at 1512ȼ/kg, down 13ȼ.

After an initial dip, Crossbreds closed the week slightly higher.  32 MPG in Melbourne finished the week up 8ȼ to 268ȼ/kg.

Cardings were steady in Sydney (928ȼ/kg, +2ȼ) and Melbourne (916 ȼ/kg, – 6ȼ), while Fremantle was down 11ȼ to 912 ȼ/kg.  

53,060 bales were eventually offered this week as lots were withdrawn prior to the sale and the total offering decreased from last week’s expectations.  The pass-in rate also fell marginally to 13%. At times this week, the pass-in rate reached 40% for fleece lots however by the end of the week buyers had stepped in and the pass-in rate fell.

Sales volumes decreased by 1,546 bales week-on-week as 46,143 bales were sold, still significantly above the average weekly sale volume this season of 36K bales.


This week on Mecardo, Andrew Woods looks at the rise of Vegetable Matter (VM) in the clip this year. The VM supply is plentiful, so discounts are relatively wide (for the micron categories where there is ample supply) already. The supply pressure on these discounts will remain through August and September, but they may not widen a lot further if the experience of recent years is a guide. At this stage expect VM discounts to remain near current levels through the spring.

The week ahead….

Next week more than 50,000 bales are rostered for sale, with Melbourne again having an additional Thursday sale on top of the Tuesday and Wednesday sales in the other markets.

Have any questions or comments?

We love to hear from you!
Print This Post

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!
Aerial drone photo of sheep in Winilippe Yards KondoolkaStation , SA by Stefanie Roeske

West Australian Wool Clip

With uncertainty about the size of the Western Australian sheep flock and the consequent wool clip due to drought and live export policy, Mecardo thought

Read More »

Wool warms to Winter

Last week’s positive move continued with the market posting gains across all MPG’s, with the exception of 16.5 MPG in Melbourne which eased slightly. This

Read More »

Bale breakdown for May

Wool supply is one of the key components of the greasy wool market, and the greater supply chain, which we can monitor closely as the

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.