The wool market opened post Melbourne Cup holiday to a steady result with medium merino types broader than 18.5 microns all stronger however the 18.5 & finer was all easier. This move was not sustained on the final day with the fine types continuing to lose ground, while the medium merinos held relatively stable.

The Eastern Market Indicator (EMI) was carried by the stronger microns and rose 7ȼ for the week to close at 1,340ȼ. The Australian dollar was weaker with the US/Au rate quoted at US$0.745, which contributed to the EMI in US dollar terms moving down by 3ȼ to settle at 999ȼ. 

Selling last, Fremantle posted the strongest result, with only the 18 MPG in negative territory. For the week, the Western Market Indicator (WMI) rose 34ȼ cents to 1402ȼ. Fremantle sold 4,633 of the 5,331 bales offered with 13.1% of offered bales passed in.

A slightly smaller national offering came forward this week with 39,360 bales offered, just on 3,000 fewer than last week. The national pass-in rate of 10.3% was almost half of last week’s pass-in rate. There were 35,317 bales sold, just on 2,000 more than last week.

The crossbred indicators had a very positive week, the 26 MPG improved 48ȼ for the week, while the 28 & 30 MPG lifted 37ȼ & 40ȼ respectively. Tagging along was the 32 MPG which posted a 35ȼ lift.

Cardings were also stronger across all centres, Fremantle lifted 23ȼ, while in Melbourne the indicator rose 14ȼ and 15ȼ in Sydney.

This week on Mecardo (view article here), Andrew Woods looked at the outlook for the current micron premiums and discounts between micron categories.  While fine wool premiums are very attractive at present, they seem unlikely to last, as supply trends allow them to move from their current extreme levels back towards longer term average levels. For broader micron merino wool, this means the big discounts currently seen, will no doubt shrink.

The week ahead….

Next week a similar offering is listed for sale in Fremantle, Melbourne & Sydney. All centres are selling on Tuesday & Wednesday, with 40,742 bales currently rostered.

Have any questions or comments?

We love to hear from you!
Print This Post

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: AWEX, AWI, Mecardo

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services

Have any questions or comments?

We love to hear from you!
Australian wool manufacturer
Sheep

Crossbred wool and acrylic

At the risk of flogging a subject to death Mecardo has another look at crossbred wool prices this week, in relation to acrylic staple fibre

Read More »
Wool

Slow start, then action!

AWI reported the first day of selling had buyers operating in an atmosphere “devoid of confidence”, which despite a weaker Au$ saw prices fall. However,

Read More »
Sheep in a yard
Wool

Vegetable matter discounts

Mecardo looked at vegetable matter (VM) discounts for broad merino in mid-August, when they had blown out to extreme levels. This article takes a look

Read More »

Don’t have an account with us? Join free.

You can have full premium access to all of our content with a monthly or annual subscription. 

Alternatively, create a free account to access our Insights blog and two free premium article a month!

Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
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.

Photo of a farmer surrounded by Merino sheep in dusty yards
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. 

Image of harvested grain pouring into a chaser bin
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.