As the 2023/24 season approaches the finish line, the recent momentum of pricing has fallen short as the majority of fine and medium micron price categories finished the week lower despite easing supply.
The Eastern Market Indicator (EMI) lost 10¢ this week, to
1160¢/kg in a quiet sales week resulting in the 2nd lowest number of
weekly bales sold this season. The EMI expressed in US$ lost 5¢ to 773¢ and
will be one to watch next season as the RBA is put in a difficult decision
regarding further rate rises to fight inflation.
In Sydney, 20MPG was the sole improver of the week, lifting
3¢ to 1374¢/kg.Losses at the
fine end ranged from 13¢ to 38¢, with 17MPG losing 38¢ to 1712¢/kg. Further South, all merino categories in
Melbourne lost ground for the week but saw steeper losses at the medium end of
the offering. 21MPG lowered 30¢ to 1322¢/kg.
Crossbred performance varied greatly depending on where you
were selling this week. Sydney 26MPG lost 23¢ to 552¢/kg but gained 17¢ to
585¢/kg in Melbourne.Despite the smaller offering, the pass-in rate
jumped to 7.9% nationally.
Low quantities saw the Fremantle market not operate this
week, however, with the discourse and uncertainty around what’s next for the
West Australian Sheep flock, Andrew Woods investigated how the impacts of
change will be quite varied (read here). The
Western Australian flock is mainly a merino flock, and its wool production is
concentrated in the 18 to 22-micron categories making up 28% of 19-micron
production in recent seasons.
The week ahead….
Next week’s sale will be the last of the 2023/24 season and 40K bales are forecast across all three centres.
Typically buyers are not scared off from big volumes before the end of the Financial year so it will be interesting to see whether this week’s weaker market was in anticipation of more to choose from next week.
The end of the season produced a softer market with the Merino fleece the main culprit although the increased offering across the three selling centres
With uncertainty about the size of the Western Australian sheep flock and the consequent wool clip due to drought and live export policy, Mecardo thought
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In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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Small offering, small interest
The Eastern Market Indicator (EMI) lost 10¢ this week, to 1160¢/kg in a quiet sales week resulting in the 2nd lowest number of weekly bales sold this season. The EMI expressed in US$ lost 5¢ to 773¢ and will be one to watch next season as the RBA is put in a difficult decision regarding further rate rises to fight inflation.
In Sydney, 20MPG was the sole improver of the week, lifting 3¢ to 1374¢/kg. Losses at the fine end ranged from 13¢ to 38¢, with 17MPG losing 38¢ to 1712¢/kg. Further South, all merino categories in Melbourne lost ground for the week but saw steeper losses at the medium end of the offering. 21MPG lowered 30¢ to 1322¢/kg.
Crossbred performance varied greatly depending on where you were selling this week. Sydney 26MPG lost 23¢ to 552¢/kg but gained 17¢ to 585¢/kg in Melbourne. Despite the smaller offering, the pass-in rate jumped to 7.9% nationally.
Low quantities saw the Fremantle market not operate this week, however, with the discourse and uncertainty around what’s next for the West Australian Sheep flock, Andrew Woods investigated how the impacts of change will be quite varied (read here). The Western Australian flock is mainly a merino flock, and its wool production is concentrated in the 18 to 22-micron categories making up 28% of 19-micron production in recent seasons.
The week ahead….
Next week’s sale will be the last of the 2023/24 season and 40K bales are forecast across all three centres.
Typically buyers are not scared off from big volumes before the end of the Financial year so it will be interesting to see whether this week’s weaker market was in anticipation of more to choose from next week.
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Data sources: AWEX, AWI, Mecardo
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Market stumbles to end of season
The end of the season produced a softer market with the Merino fleece the main culprit although the increased offering across the three selling centres
Agricultural Commodity prices since the mid 1990’s
A suggestion was made recently for an article to look at the change in price levels across a range of agricultural commodity prices during the
Small offering, small interest
As the 2023/24 season approaches the finish line, the recent momentum of pricing has fallen short as the majority of fine and medium micron price
West Australian Wool Clip
With uncertainty about the size of the Western Australian sheep flock and the consequent wool clip due to drought and live export policy, Mecardo thought
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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.
Research: Analysis of the Australian sheep flock
In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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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.