The wool market seems to be chugging along in a similar pattern to recent weeks, with bales cleared hovering around the 40k mark. In the AWEX report this week, it was noted that the difference in demand & price between sound, better style, and quality-assured wool types was again evident. AWEX also noted that the market was on track for consecutive weekly increases until the auctions lost ground on Thursday when only the Melbourne sales operated.
The Eastern Market Indicator (EMI) held at 1318 ȼ/kg, with no change on last week’s level. Whilst the Australian dollar moved marginally lower (down to 0.617 USȼ), the impacts were hardly felt in the wool market, as the EMI saw a 7ȼ decrease when expressed in $US, finishing the week at 881 USȼ/kg.
In Sydney, the 16.5 MPG fleece found favour on the back of a quality offering, gaining 25 ȼ to finish the week at 2375 ȼ/kg. The contrast though was in Melbourne where the 17 & 18 MPG indicators fell 27 & 23 ȼ respectively, as a high percentage of lower style and more tender wool came to market. Sydney fared better than Melbourne for the medium merino types, the 20 MPG indicator up 25ȼ while in Melbourne the market eased by 19ȼ to end the week at 1504 ȼ/kg.
The Western Market Indicator (WMI) had another strong week, it closed the week at 1480ȼ/kg, an increase of 18ȼ on the back of a similar rise last week.
Crossbred markets were weaker this week, with the 28 MPG fleece in Melbourne down 14ȼ to 338 ȼ/kg.
Eastern market cardings were down 6 ȼ and 10 ȼ in Sydney (859¢) and Melbourne (878¢) respectively. The west held solid, down just 1ȼ to finish the week at 871¢.
Again, a large offering of 44,145 bales was offered to the trade, however, with a pass-in rate of 10.6% resulted in the weekly clearance of 39,483 bales: an increase of 2534 more bales than last week.
This week on Mecardo, Andrew Woods explores the variation in wool production by region and how this can help to better understand wool production and its relation to variations in seasonal conditions. Average wool specifications for the calendar year 2022 have been uniform across the regions apart from fibre diameter, which is structurally different, as is the seasonally driven vegetable matter content.
The week ahead….
Next week (week 40) has 52,724 bales scheduled for auction. This is the largest volume for some time, and while there are likely to be withdrawals before the auction, this volume will test the market.
Low wool prices, along with dry seasonal conditions, lead to poor sentiment. Given the current low wool prices (and apparel fibre prices generally) the question
The wool market responded to a slightly higher Au$ with a weaker auction market. The market is now meandering without any strong demand, despite volumes
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.
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.
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.
Market steady again
The Eastern Market Indicator (EMI) held at 1318 ȼ/kg, with no change on last week’s level. Whilst the Australian dollar moved marginally lower (down to 0.617 USȼ), the impacts were hardly felt in the wool market, as the EMI saw a 7ȼ decrease when expressed in $US, finishing the week at 881 USȼ/kg.
In Sydney, the 16.5 MPG fleece found favour on the back of a quality offering, gaining 25 ȼ to finish the week at 2375 ȼ/kg. The contrast though was in Melbourne where the 17 & 18 MPG indicators fell 27 & 23 ȼ respectively, as a high percentage of lower style and more tender wool came to market. Sydney fared better than Melbourne for the medium merino types, the 20 MPG indicator up 25ȼ while in Melbourne the market eased by 19ȼ to end the week at 1504 ȼ/kg.
The Western Market Indicator (WMI) had another strong week, it closed the week at 1480ȼ/kg, an increase of 18ȼ on the back of a similar rise last week.
Crossbred markets were weaker this week, with the 28 MPG fleece in Melbourne down 14ȼ to 338 ȼ/kg.
Eastern market cardings were down 6 ȼ and 10 ȼ in Sydney (859¢) and Melbourne (878¢) respectively. The west held solid, down just 1ȼ to finish the week at 871¢.
Again, a large offering of 44,145 bales was offered to the trade, however, with a pass-in rate of 10.6% resulted in the weekly clearance of 39,483 bales: an increase of 2534 more bales than last week.
This week on Mecardo, Andrew Woods explores the variation in wool production by region and how this can help to better understand wool production and its relation to variations in seasonal conditions. Average wool specifications for the calendar year 2022 have been uniform across the regions apart from fibre diameter, which is structurally different, as is the seasonally driven vegetable matter content.
The week ahead….
Next week (week 40) has 52,724 bales scheduled for auction. This is the largest volume for some time, and while there are likely to be withdrawals before the auction, this volume will test the market.
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?
Supply and price for broad Merino
Low wool prices, along with dry seasonal conditions, lead to poor sentiment. Given the current low wool prices (and apparel fibre prices generally) the question
Wool market dragon is stirring
When the cat is away the mice will play. Good news for the Chinese property market before China’s public holiday break has boosted the confidence
Argentine Wool Clip
With full season data available for the Argentine wool clip, it is time to review the wool production of this member of the Southern Hemisphere
Wool market lacking inspiration
The wool market responded to a slightly higher Au$ with a weaker auction market. The market is now meandering without any strong demand, despite volumes
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.