This week it was the fine end of the clip that lifted the market in a week where a much smaller offering came forward.
19 MPG and finer added between 24 & 54 cents, with AWEX reporting that it was only losses in the broader Merino section, crossbreds and cardings that prevented the EMI from posting even higher levels.
The Eastern Market Indicator (EMI) lifted 9¢ this week to finish at 1,315¢. In US dollar terms with the Aussie dollar slightly stronger during the week to settle at US$0.778, the EMI gained 15 US¢, to finish at 1,023¢.
At Fremantle sales, the Western Market Indicator (WMI) posted a similar result, gaining 11¢ for the week to settle at 1,361¢.
Again the fine wool premiums have come under notice. Using the 17 MPG premium (basis) over 21 MPG paints a good picture of the situation. Comparing the same sale last year, the premium has grown from 317¢ to 1,020¢. The Southern 17 MPG is 700¢ higher than year-ago levels, while the 21 MPG is at similar levels.
The Crossbreds struggled again this week, recording overall losses for the third consecutive sale. AWEX reported 7 to 18¢ falls, with the 30 MPG falling 7¢ while the 32 MPG gave up 18¢ in Melbourne.
Cardings were mixed with the indicator down 4¢ in Fremantle, up 9¢ in Sydney & down 9¢ in Melbourne.
Almost 8,000 fewer bales came forward with 41,857 bales offered this week after 6.1% of the original offering was withdrawn. With a 10.9% pass-in rate, just 37,300 bales were cleared to the trade, 6,008 bales less than last week. This was the lowest clearance for 2021.
This week on Mecardo, Andrew Woods looked at fine Merino volumes and price. Increasing supply from the mid-1990s to 2010 explains the increasing gross sales value.
Since 2010 median gross sales value for 16-18 micron wool sold at auction in Australia has been US$590 million with two exceptional seasons where the expenditure was 55% higher.
The question is now whether the US$590 million gross sales value is the norm about which supply chain expenditure varies.
The week ahead….
Next week there are 47,028 bales listed for sale across the three principal selling centres. All centres will sell on Tuesday & Wednesday with Melbourne also selling on Thursday.
This week’s wool market performance was a delicate balancing act, teetering between currency-driven gains and international headwinds. The Eastern Market Indicator (EMI) closed at 1,262¢,
Given the massive flooding in Queensland, the natural question is what impact will this have on livestock supply, and consequently prices? This article takes a
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.
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.
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.
Offering down and prices up
The Eastern Market Indicator (EMI) lifted 9¢ this week to finish at 1,315¢. In US dollar terms with the Aussie dollar slightly stronger during the week to settle at US$0.778, the EMI gained 15 US¢, to finish at 1,023¢.
At Fremantle sales, the Western Market Indicator (WMI) posted a similar result, gaining 11¢ for the week to settle at 1,361¢.
Again the fine wool premiums have come under notice. Using the 17 MPG premium (basis) over 21 MPG paints a good picture of the situation. Comparing the same sale last year, the premium has grown from 317¢ to 1,020¢. The Southern 17 MPG is 700¢ higher than year-ago levels, while the 21 MPG is at similar levels.
The Crossbreds struggled again this week, recording overall losses for the third consecutive sale. AWEX reported 7 to 18¢ falls, with the 30 MPG falling 7¢ while the 32 MPG gave up 18¢ in Melbourne.
Cardings were mixed with the indicator down 4¢ in Fremantle, up 9¢ in Sydney & down 9¢ in Melbourne.
Almost 8,000 fewer bales came forward with 41,857 bales offered this week after 6.1% of the original offering was withdrawn. With a 10.9% pass-in rate, just 37,300 bales were cleared to the trade, 6,008 bales less than last week. This was the lowest clearance for 2021.
This week on Mecardo, Andrew Woods looked at fine Merino volumes and price. Increasing supply from the mid-1990s to 2010 explains the increasing gross sales value.
Since 2010 median gross sales value for 16-18 micron wool sold at auction in Australia has been US$590 million with two exceptional seasons where the expenditure was 55% higher.
The question is now whether the US$590 million gross sales value is the norm about which supply chain expenditure varies.
The week ahead….
Next week there are 47,028 bales listed for sale across the three principal selling centres. All centres will sell on Tuesday & Wednesday with Melbourne also selling on Thursday.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
Categories
Have any questions or comments?
Deciles look backwards not forwards
Deciles (percentiles) analysis of price data is useful as a way to identify the middle or median price and provide some estimates of the probability
A tale of two currencies in the wool market
This week’s wool market performance was a delicate balancing act, teetering between currency-driven gains and international headwinds. The Eastern Market Indicator (EMI) closed at 1,262¢,
Queensland sheep and wool numbers
Given the massive flooding in Queensland, the natural question is what impact will this have on livestock supply, and consequently prices? This article takes a
Wool market maintains a steady climb
The Australian wool market reverted to its recent upward trend this week, with the Eastern Market Indicator (EMI) rising 4 cents to close at 1,249
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.
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.