Sellers hold on as we reach recess

Nutrien Ag Solutions wool shearers.

In the last sale before the three-week mid-year recess, bids were not able reach seller expectations or hopes as the pass in rate jumped and the Eastern Market Indicator (EMI) fell.

The EMI fell by 28¢ this week to 1,873¢ in Australian Dollar terms, although for context this is a 51% increase on where the EMI was at in the same week before mid-year recess last year. The bale offering increased by 50% to 31,751 while the pass in rate jumped to 15.3%. Bales sold totalled 26,900 which is 16% below the average for the past 12 months.  Sellers will try their luck in August.

All regional market indicators were down with Sydney falling by 29¢ to 1933¢, Melbourne down by 27¢ to 1833¢ and Fremantle fell by 32¢ to 2062¢.

In Sydney, 17 MPG was down by 20¢ to 2563¢, 19 MPG fell by 44¢ to 2265¢ and 20 MPG saw a decrease of 27¢ to 2121¢. 28 MPG crossbred wool fell by 45¢ to 805¢ and cardings rose by 5¢ to 1200¢ – which was the only increase on the board this week.

In Melbourne, losses were seen across the board with 17 MPG falling by 49¢ to 2542¢, 18 MPG down by 40¢ to 2455¢ and 19 MPG decreased by 29¢ to 2269¢. 28 MPG was down by 42¢ to 790¢ and cardings fell by 24¢ to 1138¢.

Downturn in prices also impacted Western markets.  18 MPG was down by 44¢ to 2460¢, 19 MPG fell by 49¢ to 2273¢, 20 MPG decreased by 21¢ to 2119¢ and cardings were down by 34¢ to 1148¢.

This week in Mecardo, Andrew Woods looks into the vegetable fault quality levels in the Australian wool clip. After minimal levels in 2021 and 2022 followed by elevated levels in 2023, VM levels in Eastern Australia are following their rolling five-year median level. VM levels in Western Australia have peaked and are now falling. (article available here).

The week ahead….

The mid-year recess now begins, and Auctions will return on the 18th of August.

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Data sources: AWEX, Mecardo

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