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.
With the eternal battle between enterprises for farm resources continuing, it is interesting to stand back and see what has changed and what hasn’t between
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.
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.
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.
Market downward spiral continues
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.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources:
AWEX, AWI, Mecardo
Categories
Have any questions or comments?
History of the Southern hemisphere sheep flock
The recent AWPFC forecast for wool production to be down to levels of the early 1920s (and 2019) warrants a look at what has been
Wool production changes across Australia’s sheep regions
With the eternal battle between enterprises for farm resources continuing, it is interesting to stand back and see what has changed and what hasn’t between
More of the same for wool
Compared to last week it was a similar offering, same pass-in rate, and limited market moves. The wool market delivered again on its 2024 theme
Lower volumes and finer wools
Change in wool supply is always an issue with regard to the relative price of wool of varying quality (be that breed, micron, staple length,
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.