The end of the season produced a softer market with the Merino fleece the main culprit although the increased offering across the three selling centres didn’t help. With a larger offering, the clearance rate and pass-in rate were all higher this week was the highest pass-in rate since August 2023.
The Eastern Market Indicator (EMI) lost a further 18¢ this
week, to settle at 1142¢/kg, just 16¢/kg to the good of the starting level for
the season. However, if you were looking for a positive it was the additional
5,371 bales cleared to buyers compared to last week’s volume. The EMI expressed
in US$ remained unchanged at 763, reinforcing the downward effect the slightly
stronger $US had on the market.
In Fremantle, the market quickly fell into step with the
East Coast levels on Tuesday, with falls across the MPG’s. This resulted in a
significant volume withdrawn on Wednesday before the sale opening, which
provided some support for the market.
Falls in the range between -11¢/kg (20 MPG) and -49¢/kg (18
MPG) were experienced in Melbourne and Sydney, while in Fremantle the range was
-18¢/kg (21 MPG) and -28¢/kg (18 MPG) and.
Cardings were also down, -4¢/kg in Sydney, -7¢/kg in
Melbourne and -15¢/kg in Fremantle.
Again, the Crossbred section reported that better prepared
lots were well supported while poor clip preparation was punished, overall
though the crossbred sector held steady on last week’s levels.
With a larger offering, the pass-in rate increased to 11.5%
nationally, as also did the clearance rate to see 32,861 bales sold. For the
season 2023-24, the average clearance per week was 37,753, compared to the
previous season of 36,914 per week.
Fibre prices have trended lower in deflated terms in recent
decades, except where quality has changed. This week on Mecardo, Andrew Woods had
a look at how various commodities have performed (read
here). It makes interesting reading, whereas 2019 was a very good year for
Australian agricultural commodity prices in relation to 2003-2005, in 2024
prices are generally lower.
Next week
Next week’s sale will be the first for the 2024/25 season with 36,653 bales currently rostered across all three centres.
The end of the season produced a softer market with the Merino fleece the main culprit although the increased offering across the three selling centres
With uncertainty about the size of the Western Australian sheep flock and the consequent wool clip due to drought and live export policy, Mecardo thought
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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 stumbles to end of season
The Eastern Market Indicator (EMI) lost a further 18¢ this week, to settle at 1142¢/kg, just 16¢/kg to the good of the starting level for the season. However, if you were looking for a positive it was the additional 5,371 bales cleared to buyers compared to last week’s volume. The EMI expressed in US$ remained unchanged at 763, reinforcing the downward effect the slightly stronger $US had on the market.
In Fremantle, the market quickly fell into step with the East Coast levels on Tuesday, with falls across the MPG’s. This resulted in a significant volume withdrawn on Wednesday before the sale opening, which provided some support for the market.
Falls in the range between -11¢/kg (20 MPG) and -49¢/kg (18 MPG) were experienced in Melbourne and Sydney, while in Fremantle the range was -18¢/kg (21 MPG) and -28¢/kg (18 MPG) and.
Cardings were also down, -4¢/kg in Sydney, -7¢/kg in Melbourne and -15¢/kg in Fremantle.
Again, the Crossbred section reported that better prepared lots were well supported while poor clip preparation was punished, overall though the crossbred sector held steady on last week’s levels.
With a larger offering, the pass-in rate increased to 11.5% nationally, as also did the clearance rate to see 32,861 bales sold. For the season 2023-24, the average clearance per week was 37,753, compared to the previous season of 36,914 per week.
Fibre prices have trended lower in deflated terms in recent decades, except where quality has changed. This week on Mecardo, Andrew Woods had a look at how various commodities have performed (read here). It makes interesting reading, whereas 2019 was a very good year for Australian agricultural commodity prices in relation to 2003-2005, in 2024 prices are generally lower.
Next week
Next week’s sale will be the first for the 2024/25 season with 36,653 bales currently rostered across all three centres.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: AWEX, AWI, Mecardo
Categories
Have any questions or comments?
Market stumbles to end of season
The end of the season produced a softer market with the Merino fleece the main culprit although the increased offering across the three selling centres
Agricultural Commodity prices since the mid 1990’s
A suggestion was made recently for an article to look at the change in price levels across a range of agricultural commodity prices during the
Small offering, small interest
As the 2023/24 season approaches the finish line, the recent momentum of pricing has fallen short as the majority of fine and medium micron price
West Australian Wool Clip
With uncertainty about the size of the Western Australian sheep flock and the consequent wool clip due to drought and live export policy, Mecardo thought
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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.