Quality schemes & low VM wool attracts strong bidding

Wool bales

This week the Eastern Market Indicator (EMI) managed to reverse some of the falls of the past two weeks, albeit marginally, whilst the Australian Wool Exchange (AWEX) reported the strongest buyer focus was on ‘good style, low vm (less than 1% vegetable matter) wools’.

The EMI lifted by 1ȼ on last week to close at 1,421ȼ. The Australian dollar fell by 0.31ȼ with the AUD quoted at US$0.7183. This resulted in the EMI in US dollar terms moving down by 4 cents to settle at 1021ȼ.

The Western Market Indicator lifted by another 8ȼ to finish the week at 1458ȼ, with all indicators lifting between 2 to 26ȼ bar cardings which fell by 5ȼ. Fremantle sold over 1000 fewer bales this week compared to last, passing in 19.2% of the offering.

In Sydney and Melbourne, the finer types performed strongest with all indicators 18.5 and finer posting gains.  17.5 MPG in Melbourne was the standout, lifting 21ȼ  on the week prior, to 2457ȼ/kg.

Medium type wool results were mixed, with the 19.5 & 20 MPG in Melbourne posting small gains of 7 & 2ȼ  respectively, whilst the others recorded small falls or stayed put. Cardings in Sydney lifted just 1ȼ but fell 2 cents in Melbourne & 5 cents in Fremantle.   

The national offering was initially expecting  50,142 bales but as reported by AWEX, 3.6% of the offering was withdrawn prior to sale. In the end, 46,338 bales were on offer with a national pass-in rate of 11.8%. This resulted in 40,848 bales sold, just shy of 3,500 bales less than the week prior.

On Mecardo this week (view article here), Andrew Woods took a closer look at premiums for Responsible Wool Standard certified wool from South Africa and Australia. Interestingly, this week AWEX  reported “intense bidding for specialty Non-Mulesed wool” with premiums of 200+ cents, when compared to similar Mulesed lots. This matches up with Andrew’s analysis which calculates Australian Ceased-museled/Non-museled wool premiums have been on average 257 cents, whilst in South Africa, the premium has been 323 cents.

The week ahead….

Another large offering next week of 51,295 bales listed with all centres selling on Tuesday & Wednesday, with Melbourne selling on Thursday again.

Have any questions or comments?

We love to hear from you!
Print This Post

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: AWEX, AWI, Mecardo

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services

Have any questions or comments?

We love to hear from you!

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

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
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.

Photo of a farmer surrounded by Merino sheep in dusty yards
Research: Analysis of the Australian sheep flock

In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making. 

Image of harvested grain pouring into a chaser bin

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.