The Eastern Market indicator was unchanged this week as strong bidding for higher-quality fleece was balanced out by discounts for less-than-ideal lots. As wool supply shifts finer and the incidence of vegetable matter in fleece decreases overall in the clip, the scrutiny of buyers will become increasingly important.

In Sydney, the finer end of the spectrum performed best with 17MPG up 23¢ to 1711¢/kg and 17.5MPG 20¢ higher to 1625¢/kg. However, 18MPG did lose 23¢ on the week to 1528¢/kg. Sydney markets continue to perform strongly as clearance rates remain elevated (the pass-in rate averaged 3.4% in Sydney), demand for high-quality lots is strong and the market is content with discounts for the less-than-ideal offerings.

In Melbourne, all finer micron price guides saw a bump in pricing but medium categories saw modest increases or decreases. 17MPG increased 12¢ to 1714¢/kg and 18MPG improved 14¢ to 1526¢/kg.

The Western Market Indicator (WMI) lost 10¢ on the week, reaching at 1266¢/kg. Despite a strong showing from 18MPG which increased 29¢ to 1539¢/kg, the rest of the catalogue saw overall price declines as Merino fleece offered in the West averaged at the lower end of best style (4.9) for the week. 20MPG lost 14¢ to 1324¢/kg.

Crossbred wool had a mixed week, as Sydney 28MPG lost 10¢ to 370¢/kg, Melbourne 30MPG lost 13¢ to 350¢/kg but 26MPG reached to 600¢ mark, increasing 18¢ to 602¢/kg.

Cardings in Sydney were up 2¢ to 701, lost 4¢ to 678¢/kg in Melbourne, and a further decline of 9¢ to 689¢/kg in Fremantle.

Despite a marginal decline in offered bales this week (39K), the pass-in rate jumped slightly to 6.7% nationally. AWI noted stronger local participation in bidding after significant buying activity from Chinese buyers last week.  

Next week

Sales volumes have been consistent over the spring, but a 20% increase in the offering next week of 47K bales will test the appetite of buyers.

Next week all three centres will be selling on Tuesday and Wednesday.

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Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: AWEX,AWI, Nutrien Ag Solutions, Mecardo

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