The positive run continued in the Merino market this week in the east, however, the west failed to sustain the momentum and gave way. As the selling season approaches its tail end, wool volumes are gradually easing, contributing to the recent price improvements.
The Eastern Market Indicator gained 14¢ or 1.2% to settle at
1172¢/kg. With a rise in the AUD to 0.65 US¢, this put the EMI in USD terms at
764¢ which was a 2.8% lift on the week prior.
Both Sydney and Melbourne markets were stronger again this
week, opening to an invigorated atmosphere in the sales rooms with traders
having a solid go. While activity was
more subdued on day two, and some of the price gains were lost, overall, there
were some solid price improvements in the east.
Sydney Merino fleece picked up between 17 and 45¢ for the 17
to 20 MPG’s. Fine wool MPG’s in Melbourne improved 16 to 33¢ on the week, but
19MPG slipped 5¢ lower. Crossbred wools sold firm to slightly weaker overall.
Day one in Fremantle didn’t quite have the same gusto as the
eastern markets but prices did still improve up to 10¢. Good, stylish fleece
sold well and received a premium but reoffers or anything with fault received
limited interest. Losses across all Merino types and descriptions occurred on
day two in Fremantle, leaving the WMI Western Market Indicator down 1¢ week on
week and most Merino MPGs 5 to 15¢ lower compared to the week prior.
It was Merino Cardings that had the best run in the West, up
37¢ week on week to 765¢. Cardings also sold well in Sydney and Melbourne,
lifting 3 and 12¢ respectively.
The offering of 41,788 bales was lower this week compared to
last, and in the end, 39,624 bales sold. The national pass-in rate lifted to
5.2% this week, but this was largely driven by the west where the softer market
saw a pass-in rate of 8.7%.
The mutton market is
the other important piece of the equation for sheep producers and the
volatility is another headwind at a time of weak wool prices. Mutton prices are
inherently more volatile than lamb prices (read more) but the recent collapse and recoveries have been similar to earlier
patterns during the past half a century, making the movements in the last 12
months not unfamiliar.
Next week
Next week all centres are selling on Tuesday and Wednesday with 41,433 bales registered.
Wool markets opened to underwhelming demand across all centres as the trade approaches Winter and the end of the 2023/24 selling season. Although it is
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
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.
Merino market upswing carries on in the East
The Eastern Market Indicator gained 14¢ or 1.2% to settle at 1172¢/kg. With a rise in the AUD to 0.65 US¢, this put the EMI in USD terms at 764¢ which was a 2.8% lift on the week prior.
Both Sydney and Melbourne markets were stronger again this week, opening to an invigorated atmosphere in the sales rooms with traders having a solid go. While activity was more subdued on day two, and some of the price gains were lost, overall, there were some solid price improvements in the east.
Sydney Merino fleece picked up between 17 and 45¢ for the 17 to 20 MPG’s. Fine wool MPG’s in Melbourne improved 16 to 33¢ on the week, but 19MPG slipped 5¢ lower. Crossbred wools sold firm to slightly weaker overall.
Day one in Fremantle didn’t quite have the same gusto as the eastern markets but prices did still improve up to 10¢. Good, stylish fleece sold well and received a premium but reoffers or anything with fault received limited interest. Losses across all Merino types and descriptions occurred on day two in Fremantle, leaving the WMI Western Market Indicator down 1¢ week on week and most Merino MPGs 5 to 15¢ lower compared to the week prior.
It was Merino Cardings that had the best run in the West, up 37¢ week on week to 765¢. Cardings also sold well in Sydney and Melbourne, lifting 3 and 12¢ respectively.
The offering of 41,788 bales was lower this week compared to last, and in the end, 39,624 bales sold. The national pass-in rate lifted to 5.2% this week, but this was largely driven by the west where the softer market saw a pass-in rate of 8.7%.
The mutton market is the other important piece of the equation for sheep producers and the volatility is another headwind at a time of weak wool prices. Mutton prices are inherently more volatile than lamb prices (read more) but the recent collapse and recoveries have been similar to earlier patterns during the past half a century, making the movements in the last 12 months not unfamiliar.
Next week
Next week all centres are selling on Tuesday and Wednesday with 41,433 bales registered.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Nutrien Ag Solutions, Mecardo
Categories
Have any questions or comments?
Withdrawals up as winter approaches
Wool markets opened to underwhelming demand across all centres as the trade approaches Winter and the end of the 2023/24 selling season. Although it is
International sheep meat supply and lamb prices
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
Merino market upswing carries on in the East
The positive run continued in the Merino market this week in the east, however, the west failed to sustain the momentum and gave way. As
Sheep meat price volatility
The drop in sheep meat prices in 2023 came as an unwelcome shock after the better part of a decade of rising prices. This article
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.