The Eastern Market Indicator (EMI) eased again by 32¢ this week to close at 1,139¢, while the Australian dollar also softened to US$0.69. The EMI in USD terms also fell 31¢ to 782¢. Fremantle again had a recess with the Western Market Indicator unchanged at 1,247¢.
Turnover was back below $20 mill to $18.50 million this week, however, the average bale value of $1,307 was $150 per bale up on last week, taking the season to date value to $1,941 million.
After growers withdrew 7.2% of the offering, just 15,800 bales came forward this week, and with a pass-in rate of 10.8%, 14,146 bales were sold.
It was noted this week that area planted to crops has increased year on year, with NSW up 95% on last year to 3.7 million hectares. (Read about this here on Mecardo).
This is confirmation of our concerns that the continued shift to grain production will continue now that the drought has broken, with the challenge for Merino sheep to regain lost acres going to be difficult. Any increase in wool supply in the medium term is likely to be modest at best.
The Crossbred sector ended a positive run with across the board falls of 20 cents.
Cardings proved more resilient despite Sydney reporting a 16-cent fall, Melbourne was dearer by 7 cents.
Low yields weighing on the market
Next week
Next week Fremantle resumes and all centres sell on Tuesday & Wednesday with 30,240 bales on offer.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: Riemann, AWEX, Mecardo
Categories
Season ends with fire & ice
The 2021/22 selling season finished on a depressed note this week in the face of a large offering. News of a fire at one of
Merino fleece RWS premiums and volume – season to date
Quality schemes continue to be a topic of conversation in the greasy wool markets, with some large premiums appearing this season for RWS accredited wool
International sheep meat supply and lamb price
Some three-quarters of Australian sheep meat by volume is exported, so prices for mutton and lamb are heavily influenced by overseas markets. In this article,
Highest EMI for the season
AWEX report that the EMI improved by 7 cents this week and has now lifted for the past three weeks a total of 60 cents
Don’t have an account with us? Join free.
You can have full premium access to all of our content with a monthly or annual subscription.
Alternatively, create a free account to access our Insights blog and two free premium article a month!
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.
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.
SERVICES AND CAPABILITIES STATEMENT BROCHURE
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.