The Eastern Market Indicator (EMI) rose this week by 41¢ to 1853¢ in Australian Dollar (AUD) terms and by 47¢ to 1330¢ in US dollar (USD) terms following a substantial 1.4% rise in the AUD/USD exchange rate to 71.76¢. and the pass in rate dipped significantly from 16.4% last week to 2% this week.
Local Market Indicators all jumped this week with Sydney finishing 41¢ higher at 1918¢, Melbourne gained 42¢ to 1810¢ and Fremantle increased by 43¢ to 2041¢.
In Sydney, the 17 MPG gained 83¢ to 2558¢, 18 MPG was up 57¢ to 2467¢ and 19 MPG jumped 43¢ higher to 2265¢. For crossbred wool, 28 MPG rose by 42¢ to 835¢ and cardings increased by 24¢ to 1184¢.
In Melbourne, 17.5 MPG finished 80¢ higher at 2504¢, 18.5 MPG was up by 58¢ to 2376¢ and 19.5 MPG increased by 69¢ to 2193¢. Crossbred wool 26 MPG was up by 18¢ to 1078¢, 28 MPG jumped by 45¢ to 835¢ and cardings gained 26¢ to 1082¢.
In Fremantle, 18 MPG rose by 51¢ to 2442¢, 19 MPG saw a 69¢ gain to 2282¢ and 21 MPG increased by 31¢ to 2030¢. Cardings fell by 14¢ to 1141¢ which was the only fall across the board this week and had been the only price gain the week before.
This week in Mecardo, Andrew Woods takes a look at supply side factors that affect the price of mutton, concluding that the average mutton to lamb price ratio since 2010 has sat around 65% and that the ratio is supported by mutton accounting for around 20-30% of sheepmeat production. Strong and relatively stable mutton prices with mutton accounting for 20-30% or less of production provide a solid income floor for sheep producers. This supports profitability and can help sustain flock numbers, which in turn underpins wool production even when wool prices themselves are soft (article available here).
Market jumps on low offering
Next week
Next week the bale offering is expected to be 9.9% higher at 26,000. Sales are scheduled for Tuesday and Wednesday in Sydney and Melbourne and on Tuesday only in Fremantle.
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Data sources: MLA, Mecardo
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