The Eastern Market Indicator (EMI) lifted 16ȼ to 1,368ȼ. The Australian dollar was almost 1ȼ lower to settle at US$0.725, which resulted in the EMI, in US dollar terms, hardly moving, posting a 1ȼ gain to settle at 992ȼ.
Last week Fremantle had a positive end to the week, so it was slightly more subdued this week than the eastern states with the Western Market Indicator (WMI) gaining 5ȼ cents to 1397ȼ. Fremantle sold 4,195 bales with a 9% pass-in rate.
It appears the market is comfortable with the level of supply coming forward, with the last 3 weeks a steady flow circa 30,000 bales have been cleared to the trade with a relatively stable EMI hovering around the 1350 to 1370 mark. Over this three-week period the pass-in rate has fluctuated between 9.3 & 12.7%, well below the average for the season to date of 17.55%.
Again, the offering was slightly larger compared to last week, with 35,745 bales offered, 1,208 more. A slightly lower pass-in rate of 9.3% eventuated, resulting in 32,405 bales selling, 2264 more than last week. The average clearance of bales per week for the season to date is 32,0129.
The merino fleece Micron Price Guides (MPGs) posted a rise this week of between 3 & 60ȼ. In Melbourne the 16.5 MPG was up 51ȼ, and the 17.5 MPG lifted 60ȼ. Medium types also gained with the 21 MPG +23ȼ, while the benchmark 19 MPG lifted 22ȼ in Melbourne.
The crossbred indicators recorded small losses, with the 26, 30 & 32 MPG all down 3ȼ while the 28 MPG eased by 7ȼ.
Cardings were all dearer except in Fremantle which gave back 10ȼ, while in Melbourne the indicator improved 26ȼ and 21ȼ in Sydney.
This week on Mecardo (view article here), Andrew Woods looks at the supply of crossbred wool. Despite anecdotal commentary, the proportion of crossbred wool in the Australian clip stopped rising around a decade ago. This is a good thing as the last thing the crossbred wool market needs at present is increasing structural supply.
When looked at by region, the proportion of crossbred wool varies greatly, with south Victoria, south east South Australia and Tasmania having the highest proportions.
Market increase on solid demand
The Eastern Market Indicator (EMI) lifted 16ȼ to 1,368ȼ. The Australian dollar was almost 1ȼ lower to settle at US$0.725, which resulted in the EMI, in US dollar terms, hardly moving, posting a 1ȼ gain to settle at 992ȼ.
Last week Fremantle had a positive end to the week, so it was slightly more subdued this week than the eastern states with the Western Market Indicator (WMI) gaining 5ȼ cents to 1397ȼ. Fremantle sold 4,195 bales with a 9% pass-in rate.
It appears the market is comfortable with the level of supply coming forward, with the last 3 weeks a steady flow circa 30,000 bales have been cleared to the trade with a relatively stable EMI hovering around the 1350 to 1370 mark. Over this three-week period the pass-in rate has fluctuated between 9.3 & 12.7%, well below the average for the season to date of 17.55%.
Again, the offering was slightly larger compared to last week, with 35,745 bales offered, 1,208 more. A slightly lower pass-in rate of 9.3% eventuated, resulting in 32,405 bales selling, 2264 more than last week. The average clearance of bales per week for the season to date is 32,0129.
The merino fleece Micron Price Guides (MPGs) posted a rise this week of between 3 & 60ȼ. In Melbourne the 16.5 MPG was up 51ȼ, and the 17.5 MPG lifted 60ȼ. Medium types also gained with the 21 MPG +23ȼ, while the benchmark 19 MPG lifted 22ȼ in Melbourne.
The crossbred indicators recorded small losses, with the 26, 30 & 32 MPG all down 3ȼ while the 28 MPG eased by 7ȼ.
Cardings were all dearer except in Fremantle which gave back 10ȼ, while in Melbourne the indicator improved 26ȼ and 21ȼ in Sydney.
This week on Mecardo (view article here), Andrew Woods looks at the supply of crossbred wool. Despite anecdotal commentary, the proportion of crossbred wool in the Australian clip stopped rising around a decade ago. This is a good thing as the last thing the crossbred wool market needs at present is increasing structural supply.
When looked at by region, the proportion of crossbred wool varies greatly, with south Victoria, south east South Australia and Tasmania having the highest proportions.
The week ahead….
Next week Fremantle, Melbourne & Sydney are all selling on Wednesday & Thursday, with a larger offering of 41,562 bales currently rostered.
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?
More bang for buyer buck
The 38,904 bales offering this week proved too much for the market to absorb without a further price decline. This coupled with a fall in
Wool consumption or production driving changes in supply?
Discussion of wool consumption is something of a chicken and egg conundrum with regards to supply, what comes first, the production or the consumption? With
Little movement on the wool front this week
The wool market presented a softer tone this week with most Micron price guides easing slightly. Demand was weaker with fewer bales sold alongside a
Merino micron volumes and price
Most merino and crossbred wool prices are struggling along at low levels, with the exception of the sub-16 micron categories. This article investigates merino price
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.