It was a cautious market from the open, with buyers reluctant to support the levels of last week.
The positive note for the week was the stronger bidding on the final day, especially for 19.5 and coarser wool.
The Eastern Market Indicator (EMI) fell just 9ȼ to 1,352ȼ. The Australian dollar was steady at US$0.73, which resulted in the EMI, in US dollar terms, easing by 14ȼ to settle at 991ȼ.
Fremantle posted a positive week selling 4,661 bales with a 14% pass-in rate. The Western Market Indicator (WMI) again lifted gaining 3ȼ cents to 1392ȼ.
It is also positive that the total turnover to date of $410.6 million is $138.24 million higher than for the same period last year. There is no doubt that despite the weekly market movement underlying demand is solid and capable of absorbing the weekly offering.
A slightly larger offering compared to last week came forward, with 34,537 bales offered, 1,541 more. A higher pass-in rate of 12.7% eventuated, resulting in 30,141 bales selling, 210 more than last week. The average clearance of bales per week for the season to date is 32,094.
AWEX reported that the market followed the closing trend of last week, with buyers adopting a cautious approach.
Only two MPG categories posted a rise this week. In Melbourne the 16.5 MPG was up 28ȼ, and the 18 MPG lifted 20ȼ. AWEX reported all other Merino MPG’s fell between 20 & 40ȼ.
The crossbred indicators were all easier recording the largest losses in % terms, with the 30 MPG down 12ȼ and the 26 MPG easier by 13ȼ.
Cardings were dearer in Fremantle, lifting 7ȼ, while in Melbourne the indicator retraced 9ȼ and eased 4ȼ in Sydney.
This week on Mecardo (view article here), Andrew Woods looks at the change in supply on an MPG basis, and while it does not explain all of the changes seen in micron premiums and discounts, it does explain a lot of it. The interesting thing about that is we have good data on supply therefore we have a good view on the key driver of the micron price curve.
The week ahead….
Next week Fremantle, Melbourne & Sydney are all selling on Tuesday & Wednesday.
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.
Small loss but positive signs
The Eastern Market Indicator (EMI) fell just 9ȼ to 1,352ȼ. The Australian dollar was steady at US$0.73, which resulted in the EMI, in US dollar terms, easing by 14ȼ to settle at 991ȼ.
Fremantle posted a positive week selling 4,661 bales with a 14% pass-in rate. The Western Market Indicator (WMI) again lifted gaining 3ȼ cents to 1392ȼ.
It is also positive that the total turnover to date of $410.6 million is $138.24 million higher than for the same period last year. There is no doubt that despite the weekly market movement underlying demand is solid and capable of absorbing the weekly offering.
A slightly larger offering compared to last week came forward, with 34,537 bales offered, 1,541 more. A higher pass-in rate of 12.7% eventuated, resulting in 30,141 bales selling, 210 more than last week. The average clearance of bales per week for the season to date is 32,094.
AWEX reported that the market followed the closing trend of last week, with buyers adopting a cautious approach.
Only two MPG categories posted a rise this week. In Melbourne the 16.5 MPG was up 28ȼ, and the 18 MPG lifted 20ȼ. AWEX reported all other Merino MPG’s fell between 20 & 40ȼ.
The crossbred indicators were all easier recording the largest losses in % terms, with the 30 MPG down 12ȼ and the 26 MPG easier by 13ȼ.
Cardings were dearer in Fremantle, lifting 7ȼ, while in Melbourne the indicator retraced 9ȼ and eased 4ȼ in Sydney.
This week on Mecardo (view article here), Andrew Woods looks at the change in supply on an MPG basis, and while it does not explain all of the changes seen in micron premiums and discounts, it does explain a lot of it. The interesting thing about that is we have good data on supply therefore we have a good view on the key driver of the micron price curve.
The week ahead….
Next week Fremantle, Melbourne & Sydney are all selling on Tuesday & Wednesday.
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
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Have any questions or comments?
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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
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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.
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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.