The Australian wool market saw a modest rise this week with the Eastern Market Indicator (EMI) increasing 16¢ to 1783¢, driven primarily by a increased offering. Sentiment remains strong, as price improved despite an uptick in the pass in rate to 7.2% and a rising aussie dollar to 0.71USc, factors that can potentially push prices lower.
The local market indicators improved in the east, up 26¢ to 1833¢ in Sydney, with milder gains, (up 8¢) to 1749¢ in Melbourne. In the west, the local indicator dropped 3¢ to 1991¢, with larger losses in 18.5–20 MPG (down between 14¢ and 20¢) buoyed by gains made in cardings up 41¢ to 1079¢.
In Sydney, strong gains were observed in fine and medium merino with 16.5 MPG and 18.5 MPG the biggest winners up 65¢ to 2456¢ and 2316¢ respectively. Cardings increased 25¢ to 1029¢, with the only decline being from 28MPG, which was down 14¢ to 688¢.
In Melbourne, off the back of two solid weeks for the fine merino markets, this week saw mixed results with 19 MPG increasing 30¢ to 2231¢ (on the back of a 118¢ leap over the prior two weeks) and 17.5 MPG declining 5¢ to 2378¢, bearing in mind that this is on the back of two strong weeks where 17.5 MPG had increase by a total of 136¢. Crossbred wool saw 28 MPG drop 23¢ to 672¢ and cardings increased 17¢ to 1046¢.
In Fremantle, fine and medium merino saw declines of 18¢ for 18 MPG to 2281¢ and 20¢ for 20 MPG to 2090¢, again bearing in mind this was a correction after strong gains made in the west last week where 18 MPG was up 126¢ and 20 MPG was up by 86¢.
This week in Mecardo, Andrew Woods took a look at the relationship between the Wool and Oil markets, offering insight into the historic performance of merino wool prices during periods of elevated oil price and the relationship between wool and oil based synthetic prices (Read more here).
The week ahead….
We haven’t seen multiple weeks in a row where the bale offering has been elevated above 42,000 for a while so it will be interesting to see where clearance rates go next week. With global trade and logistics going through a period of strong uncertainty, securing stock might counteract growing weekly supply.
Sales are scheduled for Tuesday and Wednesday next week in Syndey, Melbourne and Fremantle.
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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.
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Higher supply raises pass in rates
The local market indicators improved in the east, up 26¢ to 1833¢ in Sydney, with milder gains, (up 8¢) to 1749¢ in Melbourne. In the west, the local indicator dropped 3¢ to 1991¢, with larger losses in 18.5–20 MPG (down between 14¢ and 20¢) buoyed by gains made in cardings up 41¢ to 1079¢.
In Sydney, strong gains were observed in fine and medium merino with 16.5 MPG and 18.5 MPG the biggest winners up 65¢ to 2456¢ and 2316¢ respectively. Cardings increased 25¢ to 1029¢, with the only decline being from 28MPG, which was down 14¢ to 688¢.
In Melbourne, off the back of two solid weeks for the fine merino markets, this week saw mixed results with 19 MPG increasing 30¢ to 2231¢ (on the back of a 118¢ leap over the prior two weeks) and 17.5 MPG declining 5¢ to 2378¢, bearing in mind that this is on the back of two strong weeks where 17.5 MPG had increase by a total of 136¢. Crossbred wool saw 28 MPG drop 23¢ to 672¢ and cardings increased 17¢ to 1046¢.
In Fremantle, fine and medium merino saw declines of 18¢ for 18 MPG to 2281¢ and 20¢ for 20 MPG to 2090¢, again bearing in mind this was a correction after strong gains made in the west last week where 18 MPG was up 126¢ and 20 MPG was up by 86¢.
This week in Mecardo, Andrew Woods took a look at the relationship between the Wool and Oil markets, offering insight into the historic performance of merino wool prices during periods of elevated oil price and the relationship between wool and oil based synthetic prices (Read more here).
The week ahead….
We haven’t seen multiple weeks in a row where the bale offering has been elevated above 42,000 for a while so it will be interesting to see where clearance rates go next week. With global trade and logistics going through a period of strong uncertainty, securing stock might counteract growing weekly supply.
Sales are scheduled for Tuesday and Wednesday next week in Syndey, Melbourne and Fremantle.
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Data sources: AWEX, Mecardo
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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.
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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.