After a strong run, this week saw some correction in pricing across all sale centres, sending the EMI down 32¢ to 1751¢. For the second week in a row the offering was above 42,000. Strong supply and uncertain economic conditions impacted buyer sentiment this week which saw pass in rates reach 13.5%.
Local market indicators declined in all major centers: Sydney was down 43¢ to 1790¢, Melbourne dipped 24¢ to 1725¢ and Fremantle lost 69¢ to 1922¢.
In Sydney, fine and medium merino fell on all bases, the greatest declines were 19.5 MPG which was down 108¢ to 2081¢ and 20 MPG down 126¢ to 2010¢. Fine merino fell by less with 17.5 MPG down 51¢ to 2355¢ and 18 MPG down 36¢ to 2337¢. Bearing in mind, Sydney fine merino has been up significantly for the previous fortnight, with this week downturn largely correcting recent gains. Crossbred wool 26 MPG was down 73¢ to 825¢ with cardings being the only silver lining on the table, up 9¢ to 1038¢.
In Melbourne, prices were down across the board with 17 MPG down 45¢ to 2362¢ and 19 MPG down 58¢ to 2173¢. Medium merino saw 20 MPG and 21 MPG both decline by 40¢ to 2062¢ and 2048¢ respectively. Crossbred wool also fell with 25 MPG down 20¢ to 1020¢, carding remaining flat on 1046¢.
After marginal losses in fine and medium merino last week, Fremantle saw more significant declines, with 18.5 MPG falling 65¢ to 2216¢ sand 19.5 falling 84¢ to 2060¢. Cardings in the west saw a 45¢ fall to 1034¢.
This week on Mecardo, Andrew Woods investigates supply and premiums for RWS accredited crossbred wool which remain strong. (Read more mere)
The week ahead….
Sellers have been quick to capitalise on an upward EMI trend, however a sustained bale offering above 42,000 over the past two weeks had an inverse reaction on pass in rates, which jumped consecutively, slowing the rate of growth for the EMI last week and pushing it into decline this week.
Next week’s offering is projected to decrease from 42,278 to 40,909 (a decrease of 1,369). Will this decline be enough to steady the ship?
Auctions are scheduled for Tuesday and Wednesday next week in Sydney, Melbourne and Fremantle.
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Prices correct with another strong offering
Local market indicators declined in all major centers: Sydney was down 43¢ to 1790¢, Melbourne dipped 24¢ to 1725¢ and Fremantle lost 69¢ to 1922¢.
In Sydney, fine and medium merino fell on all bases, the greatest declines were 19.5 MPG which was down 108¢ to 2081¢ and 20 MPG down 126¢ to 2010¢. Fine merino fell by less with 17.5 MPG down 51¢ to 2355¢ and 18 MPG down 36¢ to 2337¢. Bearing in mind, Sydney fine merino has been up significantly for the previous fortnight, with this week downturn largely correcting recent gains. Crossbred wool 26 MPG was down 73¢ to 825¢ with cardings being the only silver lining on the table, up 9¢ to 1038¢.
In Melbourne, prices were down across the board with 17 MPG down 45¢ to 2362¢ and 19 MPG down 58¢ to 2173¢. Medium merino saw 20 MPG and 21 MPG both decline by 40¢ to 2062¢ and 2048¢ respectively. Crossbred wool also fell with 25 MPG down 20¢ to 1020¢, carding remaining flat on 1046¢.
After marginal losses in fine and medium merino last week, Fremantle saw more significant declines, with 18.5 MPG falling 65¢ to 2216¢ sand 19.5 falling 84¢ to 2060¢. Cardings in the west saw a 45¢ fall to 1034¢.
This week on Mecardo, Andrew Woods investigates supply and premiums for RWS accredited crossbred wool which remain strong. (Read more mere)
The week ahead….
Sellers have been quick to capitalise on an upward EMI trend, however a sustained bale offering above 42,000 over the past two weeks had an inverse reaction on pass in rates, which jumped consecutively, slowing the rate of growth for the EMI last week and pushing it into decline this week.
Next week’s offering is projected to decrease from 42,278 to 40,909 (a decrease of 1,369). Will this decline be enough to steady the ship?
Auctions are scheduled for Tuesday and Wednesday next week in Sydney, Melbourne and Fremantle.
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Data sources: AWEX, Mecardo
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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.
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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.