wool_bale_001

The Aussie wool market has been continuing to fall over the past couple of weeks, with the EMI now in its 11th week without positive movement. Low offerings and low buyer support characterised this week, with most indicators falling again, not good signs for the market overall.

The Eastern Market Indicator (EMI) fell 24ȼ this week, down to 1255ȼ/kg and with the Aussie dollar again falling (- 0.19ȼ) to 0.64US, the EMI also fell in US terms, by 41ȼ to 812ȼ/kg.

All microns 22 and finer recorded losses this week in Melbourne and Sydney, with the finer microns again experiencing the bigger falls. For 19MPG’s and finer, falls between 19 to 102ȼ were recorded whilst medium types fell between 5 to 50ȼ.

Over in the west, the Western Market Indicator (WMI) slipped 23ȼ to 1390ȼ/kg. All indicators fell in WA, with the 18MPG falling by the largest amount, down 87ȼ to 1702ȼ/kg.

Crossbreds were a little more mixed, with the 28MPG in Melbourne lifting 5ȼ, whilst the 26MPG fell 10ȼ. Cardings were a little more on the positive side, up 7 & 4ȼ in Sydney & Melbourne respectively, while slipping 3ȼ in Fremantle.

There were nearly 10,000 less bales on offer this week compared to last week, at just 28,144,  and with the pass-in rate well up at 16%, just 23,636 bales were sold. Average bales sold this season, 35,674, are now just under last season’s average.  

This week on Mecardo Andrew Woods took a look at sheep and lamb offtake numbers identifying trends to support the latest Australian Wool Forecasting Production Committee’s (AWPFC) latest projections. Andrew also looked at the wider apparel fibre complex, with more discouraging news for the wool market, as global economic woes put downward pressure on most fibres.

The week ahead….

Australian Wool Innovation (AWI)  reported in their market update summary last Friday that trade activity was present but “none of the businesses were showing outward signs of enthusiasm or confidence in the market”. With this weeks’ bigger offering scheduled it will be interesting to see whether buyer enthusiasm returns in the face of a falling market. Next week we’re back to a bigger offering, with 40,097 bales currently on offer across the three main selling centres on Wednesday & Thursday.

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Data sources:

AWEX, AWI, Mecardo

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