Gains made in the AUD/USD exchange rate, which was up by 1.2% to 0.722¢ kept the Eastern Market Indicator (EMI) in the red in AUD terms – down 12¢ to 1878¢ but finishing 8¢ higher in USD terms to 1357¢.
The bale offering was down by 6% to 23,486 with the pass in rate climbing to 10%. Bales sold totalled 21,147 for the week, which is 33% down on the average for the past 12 months.
Looking at local market indicators, Sydney was down by 13¢ to 1948¢, Melbourne dipped by 11¢ to 1831¢ and Fremantle was up by 6¢ to 2084¢.
In Sydney, merino MPGs at the fine of the spectrum had a good week with 16.5 MPG up 14¢ to 2672¢ and 17.5 rising by 37¢ to 2600¢ but for 18 MPG and broader the good news began to slip. 18 MPG was down by 10¢ to 2532¢ while 19.5 MPG saw a 42¢ decline to 2198. In crossbred wool, 28 MPG was up by 4¢ to 867¢ and cardings fell by 47¢ to 1147¢.
It was a similar story in Melbourne where merino wool under 18 MPG had a good week but everything over, not so much. 16.5 MPG gained 13¢ to 2677¢ while 17 MPG was up by 8¢ to 2631¢. 18 MPG was flat at 2532¢ and 19.5 MPG fell by 29¢ to 2204¢. Crossbred wool saw 26 MPG flat at 1105¢, while 28 MPG gained 10¢ to 870¢. Cardings fell by 9¢ to 1081¢.
In Fremantle, strong results for 18 MPG, which was up by 49¢ to 2537¢ and 19 MPG, which gained 39¢ to 2357¢ kept the WMI in the black despite a 41¢ fall in 21 MPG to 2049¢. Cardings also fell by 35¢ to 1101¢.
This week in Mecardo, Andrew Woods investigates the trend in the supply of micron groupings, showing how most of the volume declines come from broad merino (20-22 micron) production as it struggles to compete with cheaper fibres. In contrast, most micron groupings from 16 MPG and finer are experiencing growing production (article available here).
Rising AUD puts pressure on wool buyers
Next week
Next week the bale offering is set to increase by 28% to 30,185. Auctions are scheduled for Tuesday and Wednesday in Melbourne and Sydney and on Tuesday only in Fremantle.
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Click on graph to expand
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Data sources: MLA, Mecardo
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Have any questions or comments?
Fibre prices
A reader has asked whether synthetic fibre prices have settled down, implying there is an equilibrium price level for these fibres. That implication is not
Price stable as offering declines
A lower bale offering helped the Australian wool market set a very modest overall price rise, with the Eastern Market Indicator (EMI) up by 1¢
Merino supply and price
Supply is the topic of the moment in discussions about the greasy wool market, or more accurately low supply and its impact on price. Supply
Sellers unwilling to part with wool at current market
This week prices fell in the Australian wool market and pass in rates remain high as volumes have been slowly creeping back up to 30,000
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