The Eastern Market Indicator (EMI) eased 4ȼ
to 1166ȼ/kg while in US dollar terms it continued to improve lifting another 8ȼ
to US 776ȼ/kg. Generally, the MPGs were cheaper, however,
finer than 17.5 micron received stronger competition, especially in Melbourne,
where the best result was a 26ȼ/kg lift for the 17 MPG. The Western Market Indicator gave back all
last week’s gains to post a 27ȼ fall to settle at 1289ȼ/kg.
Crossbred types were cheaper, noticeably 25
& 26 MPG fell 23 & 20ȼ, while cardings were steady in Sydney, but 20ȼ lower
in both Melbourne & Fremantle.
For the second week, the market cleared
over 40,000 bales. While AWEX reported that 5.7% of the original offering was
withdrawn before the sale, 46,908 bales were offered. With a 9.5% pass-in rate,
42,459 bales were sold. This lifted the average for the season to 38,507 bales
per week, well above the 36,500 average of the previous two years.
AWEX also reported that there has been an
8.5% increase in bales offered this season, while the total value of wool
traded is $971 million, up $7.0 million on last season.
An interesting observation is that
Melbourne & Fremantle sales values are up $9 million & $11 Mill
respectively, while Sydney is minus $13 million, highlighting the larger falls
in the fine merino types this year.
This week on Mecardo, Andrew Woods looks at
how the makeup or quality of the Australian wool clip varies through the
season, and between seasons (read here).
The supply chain at times can turn up at auction generally assuming volumes and
quality will be on par with that of recent years. That leaves the demand side
of the market open to supply shocks.
Market steadies as AUD rises
Next week
Next week 47,917 bales are currently rostered, another large offering that will further test the market. Melbourne has 28,000 bales listed and will sell over Tuesday, Wednesday & Thursday, while Sydney & Fremantle are selling Tuesday & Wednesday.
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?
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