On an increased offering, the market again failed to hold prices at the previous weeks levels. Price fell while the AUD, the bales offered and the pass-in rate all rose. Neither of these increases signify a good week for wool. It was another difficult week for the wool market, with demand unable to match the offered supply.

The Eastern Market Indicator (EMI) gave up 71¢ to close this week at 858¢, falling through the 900 cent level with relative ease. The AUD was stronger at US$0.735  which dragged the EMI in USD terms also 37¢ lower, closing at 631¢. Fremantle returned to selling this week with the Western Market Indicator playing “catch-up” to drop 94¢ and now sitting at 895¢.

An offering of 28,999 bales came forward, an increase of 8,500 on last week. With a  pass-in rate of 21.5% nationally, 22,765 bales were sold, 4,570 bales more than last week.

In the Eastern States markets all microns suffered losses with the EMI falling 46 cents or a 5.0% drop on the opening day, while on the second day the falls continued although not at the same rate.

AWEX reported that the first designated Australian Superfine auction of the 20/21 season (held in Sydney) has ended with minor price increases recorded in the 19.5 micron and finer range, with the MPG’s (micron price guides) adding as much as 10 cents to last weeks levels, with solid interest for all types and descriptions & further premiums for selected ASF & MF4 (Best style), Non mulesed lots.

This week on Mecardo, Andrew Woods had a look at the rolling five year price ranks for Merino wool against a range of other non-wool apparel fibres, to check whether merino prices are following the general flow of apparel fibres (which is normal) or going their own way.

In one respect, this article can be summed up as ‘nothing to see here, move on’ as the merino price has followed the general lead of apparel fibre prices by falling to five-year lows

The crossbred section also recorded heavy losses, with the 26 MPG the most impacted with a 119 cent fall in Sydney and 154 in Melbourne.

Cardings held in Fremantle but gave up 26 & 43 cents in Sydney & Melbourne respectively.

The week ahead….

There are 32,900 bales listed, with only Melbourne selling on two days; Fremantle & Sydney just join for the one day offering

Roster volumes are on par with earlier year levels for the next four weeks; in a market with very constricted demand, so pressure is going to remain on the downside.

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Click on graph to expand

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Data sources: AWEX, Mecardo

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