The smallest offering for the 2023-24 season produced a 7¢ lift in the EMI, fleece and skirtings all improving and AWEX reporting that stylish lots were keenly sought.
The clearance of 29,726 bales was a big reduction on the seasonal weekly average clearance of 38,500 bales.
The Eastern Market Indicator lifted 7¢/kg in AUD terms to 1137¢. A slightly stronger dollar resulted in USD terms the EMI rising just 3¢ at 763¢/kg. The Fremantle market followed suit which saw prices stronger across all categories, lifting the Western Market Indicator by 7¢ over the week to 1,269¢/kg.
Positive sentiment for this week’s market was reflected in the increased buyer demand because of the reduced offering. This supports the theory that demand is stable, and failing any general uplift in demand in the future, we will see prices increase on the back reduced supply, and regress when supply increases.
While buyer interest continues to focus on the better style wools with favourable measurements, due to the limited offering of these types most merino fleece found stronger interest.
The crossbred sector found solid support also, with MPG’s recording 5 to 22¢ lift. Supply continues to wane however clip preparation continues to be a factor in the price variability.
The Cardings were quoted as “steady”; however, the national prices were supported by Fremantle with a 5¢ lift.
Supply was at its lowest point for the season with 31,383 bales offered. After the pass-in rate of 5.3% was deducted, this week just 29,726 bales were sold.
The week ahead….
A small offering of 27,499 bales is rostered for next week, with only Sydney & Melbourne selling on Tuesday & Wednesday only.
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 offering and better prices
The Eastern Market Indicator lifted 7¢/kg in AUD terms to 1137¢. A slightly stronger dollar resulted in USD terms the EMI rising just 3¢ at 763¢/kg. The Fremantle market followed suit which saw prices stronger across all categories, lifting the Western Market Indicator by 7¢ over the week to 1,269¢/kg.
Positive sentiment for this week’s market was reflected in the increased buyer demand because of the reduced offering. This supports the theory that demand is stable, and failing any general uplift in demand in the future, we will see prices increase on the back reduced supply, and regress when supply increases.
While buyer interest continues to focus on the better style wools with favourable measurements, due to the limited offering of these types most merino fleece found stronger interest.
The crossbred sector found solid support also, with MPG’s recording 5 to 22¢ lift. Supply continues to wane however clip preparation continues to be a factor in the price variability.
The Cardings were quoted as “steady”; however, the national prices were supported by Fremantle with a 5¢ lift.
Supply was at its lowest point for the season with 31,383 bales offered. After the pass-in rate of 5.3% was deducted, this week just 29,726 bales were sold.
The week ahead….
A small offering of 27,499 bales is rostered for next week, with only Sydney & Melbourne selling on Tuesday & Wednesday only.
Have any questions or comments?
Click on Table to expand
Click on figure to expand
Click on figure to expand
Data sources: Nutrien Ag Solutions, Mecardo
Categories
Have any questions or comments?
Oil and fibre prices
Armed conflict around Iran and the consequent choking of freight from the Persian Gulf via the Strait Hormuz has driven oil prices to high levels.
Supply and Pricing lower again
The Eastern Market Indicator (EMI) fell for the second week in a row this week despite a week on week decline in supply. The EMI
Merino micron premiums and discounts
The difference in price across merino micron categories in percentage terms is low at present, while reasonable in nominal cents per kg terms, less so
Prices correct with another strong offering
After a strong run, this week saw some correction in pricing across all sale centres, sending the EMI down 32¢ to 1751¢. For the second
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.