AWI reported the first day of selling had buyers operating in an atmosphere “devoid of confidence”, which despite a weaker Au$ saw prices fall.
However, this turned around significantly on the final day of sales. Buyers pushed to fill overnight orders initially lifting the market 10 – 20ȼ and then proceeding to support the market resulting in it closing at its highest level at the end of the day.
The Eastern Market Indicator (EMI) gained 17ȼ for the week to close at 1,341ȼ. The Australian dollar continued to fall, this week by 0.5 cents with the US/Au rate quoted at US$0.721. The EMI in US dollar terms was up slightly, lifting 5ȼ to settle at 967ȼ.
The strongest performance came from the fine merino section, with the Melbourne 16.5 MPG gaining 62ȼ, while the 19 MPG lifted 33ȼ and the 21 MPG gained 14ȼ.
Fremantle posted a marginally positive result across the board, although the range across the MPG’s was only -1 to + 5ȼ. AWEX reported the Western Market Indicator (WMI) lifted a further 8ȼ cents to 1401ȼ. Fremantle sold 6,405 of the 6,829 bales offered with a low 7.5% of offered bales passed in.
A smaller national offering came forward this week with 37,725 bales offered, 3,800 less than last week. The national pass-in rate was also lower at 7.5%, which resulted in 34,887 bales sold, which was 2,810 fewer than last week.
The crossbred indicators remained steady for consecutive weeks, with the 28 MPG quoted down 2ȼ while the 30 MPG remained unchanged.
Cardings continued to perform strongly, with gains in locks, stains & crutchings prices lifting 10 to 20ȼ. This pushed the regional cardings indicators all higher, with Fremantle up 21ȼ, while Melbourne gaining 8ȼ and Sydney lifting 12ȼ.
The heavy rainfall across much of the wool growing area will cause grass and burrs to now grow into the summer season. On Mecardo this week (view article here), Andrew Woods looked at the level of Vegetable Matter (VM) we can expect going forward. Previously, Mecardo looked at the seasonal patterns in VM levels, which showed VM levels generally reach seasonal lows, late in the calendar year. With VM levels still elevated in eastern Australia, this will mean that VM levels will begin to rise in 2022 from a relatively high base. This implies that VM discounts will continue to be substantial in 2022.
The week ahead….
Next week an increased offering of 41,499 bales is listed for sale in Fremantle, Melbourne & Sydney with all centres selling on Tuesday & Wednesday. Sydney is a designated superfine sale.
This week’s wool market performance was a delicate balancing act, teetering between currency-driven gains and international headwinds. The Eastern Market Indicator (EMI) closed at 1,262¢,
Given the massive flooding in Queensland, the natural question is what impact will this have on livestock supply, and consequently prices? This article takes a
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.
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.
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.
Slow start, then action!
The Eastern Market Indicator (EMI) gained 17ȼ for the week to close at 1,341ȼ. The Australian dollar continued to fall, this week by 0.5 cents with the US/Au rate quoted at US$0.721. The EMI in US dollar terms was up slightly, lifting 5ȼ to settle at 967ȼ.
The strongest performance came from the fine merino section, with the Melbourne 16.5 MPG gaining 62ȼ, while the 19 MPG lifted 33ȼ and the 21 MPG gained 14ȼ.
Fremantle posted a marginally positive result across the board, although the range across the MPG’s was only -1 to + 5ȼ. AWEX reported the Western Market Indicator (WMI) lifted a further 8ȼ cents to 1401ȼ. Fremantle sold 6,405 of the 6,829 bales offered with a low 7.5% of offered bales passed in.
A smaller national offering came forward this week with 37,725 bales offered, 3,800 less than last week. The national pass-in rate was also lower at 7.5%, which resulted in 34,887 bales sold, which was 2,810 fewer than last week.
The crossbred indicators remained steady for consecutive weeks, with the 28 MPG quoted down 2ȼ while the 30 MPG remained unchanged.
Cardings continued to perform strongly, with gains in locks, stains & crutchings prices lifting 10 to 20ȼ. This pushed the regional cardings indicators all higher, with Fremantle up 21ȼ, while Melbourne gaining 8ȼ and Sydney lifting 12ȼ.
The heavy rainfall across much of the wool growing area will cause grass and burrs to now grow into the summer season. On Mecardo this week (view article here), Andrew Woods looked at the level of Vegetable Matter (VM) we can expect going forward. Previously, Mecardo looked at the seasonal patterns in VM levels, which showed VM levels generally reach seasonal lows, late in the calendar year. With VM levels still elevated in eastern Australia, this will mean that VM levels will begin to rise in 2022 from a relatively high base. This implies that VM discounts will continue to be substantial in 2022.
The week ahead….
Next week an increased offering of 41,499 bales is listed for sale in Fremantle, Melbourne & Sydney with all centres selling on Tuesday & Wednesday. Sydney is a designated superfine sale.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, AWI, Mecardo
Categories
Have any questions or comments?
Deciles look backwards not forwards
Deciles (percentiles) analysis of price data is useful as a way to identify the middle or median price and provide some estimates of the probability
A tale of two currencies in the wool market
This week’s wool market performance was a delicate balancing act, teetering between currency-driven gains and international headwinds. The Eastern Market Indicator (EMI) closed at 1,262¢,
Queensland sheep and wool numbers
Given the massive flooding in Queensland, the natural question is what impact will this have on livestock supply, and consequently prices? This article takes a
Wool market maintains a steady climb
The Australian wool market reverted to its recent upward trend this week, with the Eastern Market Indicator (EMI) rising 4 cents to close at 1,249
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
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.
SERVICES AND CAPABILITIES STATEMENT BROCHURE
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.