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.