Minor movements paint picture of a mixed market

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A slightly higher offering drove a slightly weaker price outcome for the wool market this week. However, more positive price movements did emerge later on Wednesday in the Merino fleece and Crossbred sectors.

The Eastern Market Indicator lost 5¢/kg in AUD terms which is 84¢ or 7% lower year on year. A rebounding dollar meant that in USD terms the EMI ended the week down just 1¢ at 753¢/kg. The Fremantle market saw prices weaken across the board, and this pushed the Western Market Indicator down 13¢ across the week to 1,262¢/kg.

Stylish Merino fleece lots carrying little vegetable matter and favourable additional measurements continue to be in favour despite lacklustre demand in Sydney. Other types and descriptions were met with variable results. 19.5 MPG came under the most pressure in Sydney losing 19¢ on the week and results for the finer end of the clip varied between 12¢ week on week losses to 4¢ gains.

The fine end of the market held its ground in Melbourne with minimal price movements, however similar to Sydney, it was the medium fibres that came under the most pressure.  21 and 22 MPG dropped 20 to 30¢ week on week. Finer, well-prepared crossbred lots gained up to 15 cents on Tuesday in Melbourne, with minor price movements on Wednesday.

Supply has fallen sharply since the start of April, however with the bigger flock this year, supply has been stronger than recent years. The number of bales sold in the last four weeks has been 7% higher than the five-year average trend. This week 33,310 bales sold with a steady pass in rate of 6.2%.

The week ahead….

33,164 bales are expected to be on offer next week with all centres operating Tuesday and Wednesday. According to AWEX this would be the smallest sale since January if realised, so should support the market, if all else remains equal.

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Data sources: Nutrien Ag Solutions, Mecardo

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