The EMI is currently at 1342ȼ/kg, although in US dollar terms the EMI fell 18ȼ to 931ȼ/kg, thanks to a weakening Aussie dollar, down 1.8% to 0.694 US.
According to AWEX, the large falls last week “discouraged” some sellers from coming to market and thus the initial large offering was reduced substantially, which no doubt helped halt the downward price spiral from continuing.
There were mostly positive movements across the indicators with gains between 1 to 30 cents. The 16.5 MPG in Sydney & Melbourne were the standout performers, both lifting 30 cents apiece. There were some minor losses recorded for the other fine wool indicators, falling between 2 to 16 cents. The medium types all performed well across all centres, lifting between 4 to 22 cents bar the 22MPG in Melbourne which slipped 3 cents.
Over in the west all MPG’s lifted on the week prior with the Western Market Indicator finishing 10 cents higher at 1459 ȼ/kg.
Crossbreds had some small gains, the 26 & 30 MPG in Melbourne lifted 5 cents each, while the 28MPG in Melbourne fell just 3 cents.
Cardings in Sydney & Melbourne fell again, although not as much as the week prior, just down 7 & 6 cents respectively, while in WA the cardings indicator stayed put.
Last week’s price falls spooked some sellers and the initial large offering for this week was reduced by 10,000+ bales, to see 44,786 bales on offer. The pass-in rate was 9.6%, resulting in 40,493 bales sold, making this season’s average bales sold to date, nearly 7,000 bales higher than last season’s average.
This week on Mecardo Andrew Woods has been travelling around the world to take a look at how the other main wool producers are faring and what they can tell us about global supply & demand. Although both South Africa & Argentina are relatively miniscule in terms of total greasy wool produced compared to Australia, when filtering for wool that is RWS accredited or CM-NM, for some micron categories their contributions are an important part of the story and should be considered when looking at the global supply and demand situation.
The week ahead….
We’ve got another relatively large offering next week although it’s smaller than the last two weeks as WA quantities aren’t enough to warrant a sale there. Sydney & Melbourne sales are rostered for Tuesday & Wednesday with 40,116 bales on offer at present with no sales in WA.