Unfortunately, the second week of the new selling season resulted in a continuation of the opening weeks' sentiment. The market struggled with the twin issues of a slightly stronger AUD/USD and a larger offering trying to digest the build-up of volume over the recess. Sellers were unimpressed, lifting the pass-in rate to 11.7% of the offering, with Fremantle failing to clear 20.8% of its offering.
The Eastern Market
Indicator (EMI) closed 26 cents lower at 1,087¢/kg clean, pushed lower by a
weaker Merino fleece sector, particularly on Tuesday. The EMI is now sitting at
the lowest level since October 2020.
While the 17 MPG
performed strongly on the opening day, it was unable to hold this momentum and
had given back the gains by the end of the week. There were significant falls
in the 30 to 40¢ range across the Merino offering in all centres.
The weaker market
also spread to the one-day sale in Fremantle with the Western Market Indicator
down 25¢ on the week to 1,223¢.
Crossbred wool
results were probably the least affected this week. In Melbourne, the 28MPG remained
unchanged at 375¢. However, 26 & 30 MPG retreated 10 & 9¢ respectively.
Again, AWEX reported that “well-prepared” and “long” crossbred types attracted
keen support.
Cardings lost 11¢ in
Melbourne & Fremantle while holding steady in Sydney.
Originally 41,377 bales
were rostered, however by sale day only 32,677 bales came forward; and with 11.7%
passed in, just 32,677 bales sold. This was 5,900 fewer bales than last week.
Andrew Woods this
week looked at the shifting market share of Cotton (read more here). In price percentile terms cotton is tracking
along with the bulk of the apparel fibres and feedstocks but Cotton stocks are
high (as a ratio to use) and so too is the cotton price ratio to polyester
staple is high. What appears to be changing is the falling market share of
cotton, which is correlated to the above phenomenon of higher stocks and price
ratio.
Next week
A further 33,380 bales are listed for next week with all three centres selling.
Wool production volumes have been under strong downward pressure during the past year as a combination of dry seasonal conditions, increased costs, and low prices
Despite early buyer interest in the reduced supply, softer demand for finer Merino weighed on the market, while the crossbreds and courser segments showed resilience.
Non-mulesed accreditation is a stepping stone to qualification of various quality schemes, which in turn are stepping stones to premiums in the greasy wool market
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No warmth for this weeks wool market
The Eastern Market Indicator (EMI) closed 26 cents lower at 1,087¢/kg clean, pushed lower by a weaker Merino fleece sector, particularly on Tuesday. The EMI is now sitting at the lowest level since October 2020.
While the 17 MPG performed strongly on the opening day, it was unable to hold this momentum and had given back the gains by the end of the week. There were significant falls in the 30 to 40¢ range across the Merino offering in all centres.
The weaker market also spread to the one-day sale in Fremantle with the Western Market Indicator down 25¢ on the week to 1,223¢.
Crossbred wool results were probably the least affected this week. In Melbourne, the 28MPG remained unchanged at 375¢. However, 26 & 30 MPG retreated 10 & 9¢ respectively. Again, AWEX reported that “well-prepared” and “long” crossbred types attracted keen support.
Cardings lost 11¢ in Melbourne & Fremantle while holding steady in Sydney.
Originally 41,377 bales were rostered, however by sale day only 32,677 bales came forward; and with 11.7% passed in, just 32,677 bales sold. This was 5,900 fewer bales than last week.
Andrew Woods this week looked at the shifting market share of Cotton (read more here). In price percentile terms cotton is tracking along with the bulk of the apparel fibres and feedstocks but Cotton stocks are high (as a ratio to use) and so too is the cotton price ratio to polyester staple is high. What appears to be changing is the falling market share of cotton, which is correlated to the above phenomenon of higher stocks and price ratio.
Next week
A further 33,380 bales are listed for next week with all three centres selling.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: Nutrien Ag Solutions, AWEX, Mecardo
Categories
Have any questions or comments?
Merino and non-merino wool volumes in Australia
Wool production volumes have been under strong downward pressure during the past year as a combination of dry seasonal conditions, increased costs, and low prices
Crossbreds outshine merino in tight week
Despite early buyer interest in the reduced supply, softer demand for finer Merino weighed on the market, while the crossbreds and courser segments showed resilience.
State of origin in non-mulesed wool
Non-mulesed accreditation is a stepping stone to qualification of various quality schemes, which in turn are stepping stones to premiums in the greasy wool market
Quiet week as winter approaches
The wool market posted a modest gain this week, with the Eastern Market Indicator (EMI) rising one cent to close at 1,204 cents per kilogram.
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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.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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.