Wool bales inspection

The market opened this week on a distinctly weaker note, with AWEX reporting the Eastern Market Indicator (EMI) on Tuesday posted its lowest level since October 2020. This was turned around on the second day with all categories improving, pushing the EMI back up to end the week just 4 cents lower on last week.

Finer types led the market down, with the 17 MPG giving up 44 & 29 ȼ/kg in Sydney & Melbourne respectively. The story was more supportive for 18.5 to 20 MPG which were virtually unchanged in both Melbourne & Sydney by week’s end.

The west selling last had a strong week, with all Merino MPG’s between 17 & 50 ȼ/kg higher, lifting the Western Market Indicator (EMI) 15 ȼ for the week. The offering of 5,580 bales in the west saw just 3.1% passed with 5,405 bales cleared.

Again, crossbred types bucked the trend, lifting across the week and continuing to strengthen to the sale end. 26MPG in Melbourne improved 30 ȼ to 598 ȼ/kg and 32MPG in Melbourne rose another 15ȼ to 280 ȼ/kg, the highest point since March 2022.  Cardings fell in all centres with Sydney losing 12 ȼ, Melbourne cardings dropped 1ȼ while Fremantle eased 14ȼ/kg.

42 465 bales were offered this week, with a similar clearance of 39 188 to last week. The national pass-in rate was at 7.7%.

This week on Mecardo, Andrew Woods points out that wool, in all its variations, is a textile fibre embedded in the larger apparel fibre textile market complex.

Prices for merino (fleece) and merino cardings are following the general trend of apparel fibres drifting downwards. Apparel fibres are awaiting improved economic growth to allow prices to turn upwards. (read here).

Next week

A similar volume of 42,496 bales is rostered for next week with all three centres selling on Tuesday & Wednesday. The strong finish of later sales in WA suggests the market will open with good support.

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Click on graph to expand

Click on graph to expand

Data sources: AWEX, AWI, Mecardo

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