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The offering increased by 2,213 to 49,771 bales this week after 4.8% of the original offering was withdrawn.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?
Weak dollar welcomes wool
The wool market returned from its three-week Christmas break making a very strong start to 2025. The market was assisted by a weaker AU dollar
History of the Southern hemisphere sheep flock
The recent AWPFC forecast for wool production to be down to levels of the early 1920s (and 2019) warrants a look at what has been
Wool production changes across Australia’s sheep regions
With the eternal battle between enterprises for farm resources continuing, it is interesting to stand back and see what has changed and what hasn’t between
More of the same for wool
Compared to last week it was a similar offering, same pass-in rate, and limited market moves. The wool market delivered again on its 2024 theme
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.