The market slid lower this week, with all sections struggling to maintain recent levels. The crossbred section ended its recent run of stronger prices to post 5 to 20¢ drops week on week.
The Eastern Market Indicator (EMI) fell 10¢ to 1,128¢/kg, however, the weaker Au$ cushioned the decline in US¢, as the EMI in US$ lost 1¢ to 724¢. Merino types were most affected, with falls between 4¢ & 61¢, as 16.5 & 17 MPG were the hardest hit.
There was little to report with exporters’ content to let the market drift. Growers are not lifting pass-in rates in this lower market, probably due in part to the decline in sheep prices and the need to secure cash flow. The Sydney pass-in rate averaged 4.4% for the week.
Crossbred types were mixed, 28 & 30 MPG were cheaper while 32 MPG added 5¢ to 317¢/kg in Melbourne.
Auctions cleared 36,040 bales of the offered 39,692 bales with 9.2% passed in.
This week on Mecardo Andrew Woods looks at the recent rally in Crossbred prices which have picked up from the low levels of June. The 28 and 30-micron prices remain at very low levels in relation to Polyseter Staple Fibre (PSF) prices, therefore they appear supported so long as PSF prices do not drop. Further significant rises in US dollar terms appear limited as supply remains plentiful and the crossbred gross sales value does not appear to be increasing.
Next week
44,552 bales are currently rostered for next week’s sales which will operate on Tuesday and Wednesday at all three centres, Sydney has a designated Super Fine sale.
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Lack-lustre market
Next week
44,552 bales are currently rostered for next week’s sales which will operate on Tuesday and Wednesday at all three centres, Sydney has a designated Super Fine sale.
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Data sources: AWI,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.