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.
Sydney and Fremantle markets made up for lost time with big improvements across both the broad and merino fleece categories this week. The lower Aussie
Back from the Easter recess, results were mixed between selling centres with the Merino segment fairly steady in Sydney, stronger in Melbourne and weaker in
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.
Mixed messages from the market
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?
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?
Exchange rate pain is wool markets gain
Sydney and Fremantle markets made up for lost time with big improvements across both the broad and merino fleece categories this week. The lower Aussie
Update on RWS premiums
The greasy wool industry tends to think of quality effects on price as additive, somewhat like building a “lego price model” – add for good
A goldilocks wool market: not too hot, not too cold
Back from the Easter recess, results were mixed between selling centres with the Merino segment fairly steady in Sydney, stronger in Melbourne and weaker in
Surge to slump in Australian wool supply
Wool supply this season in Australia has been anything but smooth, with a big surge coming early in the season and now supply is dropping
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.