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.
Low wool prices, along with dry seasonal conditions, lead to poor sentiment. Given the current low wool prices (and apparel fibre prices generally) the question
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.
Minor movements paint picture of a mixed market
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.
Have any questions or comments?
Click on Table to expand
Click on graph to expand
Data sources: Nutrien Ag Solutions, Mecardo
Categories
Have any questions or comments?
Optimism a plenty
As reported last week, it felt like the wool market was stirring on the back of positive Chinese economic stimulus. This week it posted the
Supply and price for broad Merino
Low wool prices, along with dry seasonal conditions, lead to poor sentiment. Given the current low wool prices (and apparel fibre prices generally) the question
Wool market dragon is stirring
When the cat is away the mice will play. Good news for the Chinese property market before China’s public holiday break has boosted the confidence
Argentine Wool Clip
With full season data available for the Argentine wool clip, it is time to review the wool production of this member of the Southern Hemisphere
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.