Again, the wool market posted a weaker trend, falling from the outset post the Melbourne Cup delayed selling week. Growers responded with a smaller offering and a high pass-in rate.
The Eastern Market Indicator (EMI) fell on the back of last week’s negative movement, down 39ȼ to 1261ȼ/kg, falling also in US terms despite a slightly weaker Aussie dollar (-0.44ȼ), with the EMI losing 31ȼ to 802ȼ/kg (US).
All types felt the pain this week with falls between 40 and 60ȼ impacting the 18MPG and broader types across the three selling centres. The fine types were most impacted, as an example the 16.5 micron in Melbourne retreated 100ȼ for the week to 2223ȼ/kg.
The Western market indicator fell in line with the east coast sales, giving up 33ȼ to finish the week at 1394ȼ/kg.
Crossbreds also fell sharply with falls ranging from 20 to 37ȼ. The 30 MPG posted a record low price of 290 cents.
Cardings were mixed, back 6ȼ in Sydney, down 14ȼ in Melbourne however lifting by 3ȼ in Fremantle.
There was a smaller offering this week of 39,023 bales, around 2,000 fewer than the week prior, however as sellers responded to the weaker sentiment the pass-in rate lifted to 19.7%, this eventuated in 31,327 bales sold, almost 2,500 less than last week.
This week on Mecardo, Andrew Woods looked at Merino wool percentiles. The old saying that “wools ain’t wools” holds again with prices on the very fine edge of the merino distribution continuing to outperform, while prices for the bulk of the merino market are pulled lower by weaker demand. It does highlight the peril of monitoring the wool market via the Eastern Market Indicator (EMI) for wool which is quite different from the bulk of the market.
The week ahead….
Next week sales have rostered 35,949 bales for sale across the three selling centres, with Sydney hosting a designated super-fine sale.
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
