The Eastern Market Indicator (EMI) eased slightly, falling 13¢ this week to finish at 1,306¢. A similar result was posted in US dollar terms with the Aussie dollar fluctuating during the week to finally settle back at US$0.77, pulling back the EMI 11 US¢, to finish at 1008¢.
At Fremantle sales, the Western Market Indicator (WMI) posted a similar result, retracing 5¢ for the week to settle at 1,350¢.
While the market had a cautious start, by the end of the week, with only Melbourne selling on Thursday, a change of direction was reported led by low VM wools. Overall, there was little change in the MPG’s however, as the lift in better wools only offset the decline in high VM types. The large weekly offering attracted solid support, across a range of exporters.
The Crossbreds had another difficult week, with AWEX reporting 8 to 30 cent falls, with the 30 MPG falling 27 cents on top of last week’s 25 cent fall.
Cardings followed suit finishing lower in all centres with the Cardings indicator down 8¢ in Fremantle, 20¢ in Sydney & 22¢ in Melbourne. Low yielding cardings were the principle drivers of the indicators downward direction.
The offering increased by 2,213 to 49,771 bales this week after 4.8% of the original offering was withdrawn. With a 12.0% pass-in rate, 43,808 bales were cleared to the trade, 3,500 bales more than last week, with the average weekly bales sold for the season to date now 33,851. This is 6,700 more than the weekly average for last season.
Of note is that for the same week in 2020, just 21,315 bales were sold, and the EMI was 11% lower. In the face of all the challenges the market has performed well.
This week on Mecardo, Andrew Woods took a look at the gross sales value of 21 micron at Australian auctions, which have been relatively consistent in the two decades to 2019, albeit with some cyclical variations.
The stability in gross sales value shows how the trend lower in Australian production of 21 micron has underpinned the trend higher in price. The gross sales value proffers a view of demand, which price cannot as it is too influenced by supply.
Minimal price movements
The Eastern Market Indicator (EMI) eased slightly, falling 13¢ this week to finish at 1,306¢. A similar result was posted in US dollar terms with the Aussie dollar fluctuating during the week to finally settle back at US$0.77, pulling back the EMI 11 US¢, to finish at 1008¢.
At Fremantle sales, the Western Market Indicator (WMI) posted a similar result, retracing 5¢ for the week to settle at 1,350¢.
While the market had a cautious start, by the end of the week, with only Melbourne selling on Thursday, a change of direction was reported led by low VM wools. Overall, there was little change in the MPG’s however, as the lift in better wools only offset the decline in high VM types. The large weekly offering attracted solid support, across a range of exporters.
The Crossbreds had another difficult week, with AWEX reporting 8 to 30 cent falls, with the 30 MPG falling 27 cents on top of last week’s 25 cent fall.
Cardings followed suit finishing lower in all centres with the Cardings indicator down 8¢ in Fremantle, 20¢ in Sydney & 22¢ in Melbourne. Low yielding cardings were the principle drivers of the indicators downward direction.
The offering increased by 2,213 to 49,771 bales this week after 4.8% of the original offering was withdrawn. With a 12.0% pass-in rate, 43,808 bales were cleared to the trade, 3,500 bales more than last week, with the average weekly bales sold for the season to date now 33,851. This is 6,700 more than the weekly average for last season.
Of note is that for the same week in 2020, just 21,315 bales were sold, and the EMI was 11% lower. In the face of all the challenges the market has performed well.
This week on Mecardo, Andrew Woods took a look at the gross sales value of 21 micron at Australian auctions, which have been relatively consistent in the two decades to 2019, albeit with some cyclical variations.
The stability in gross sales value shows how the trend lower in Australian production of 21 micron has underpinned the trend higher in price. The gross sales value proffers a view of demand, which price cannot as it is too influenced by supply.
The week ahead….
Next week there is a reduced offering listed, with 45,929 bales listed for sale across the three principal selling centres. All centres will sell on Tuesday & Wednesday only. Cautious optimism for the offering next week on the back of a solid Melbourne sale on Thursday.
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?
Deciles look backwards not forwards
Deciles (percentiles) analysis of price data is useful as a way to identify the middle or median price and provide some estimates of the probability
A tale of two currencies in the wool market
This week’s wool market performance was a delicate balancing act, teetering between currency-driven gains and international headwinds. The Eastern Market Indicator (EMI) closed at 1,262¢,
Queensland sheep and wool numbers
Given the massive flooding in Queensland, the natural question is what impact will this have on livestock supply, and consequently prices? This article takes a
Wool market maintains a steady climb
The Australian wool market reverted to its recent upward trend this week, with the Eastern Market Indicator (EMI) rising 4 cents to close at 1,249
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.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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.