Smooth sailing on another wave of wool

Farmer surrounded by Merino sheep with house in background

Vast volumes has been the story of the 2023 calendar thus far. Despite another significant offering, assistance from currency markets and superfine sales in Sydney allowed prices to hold firm, as pass-in rates have declined week on week.

This week the  Eastern Market Indicator (EMI) rose 4ȼ this week to 1368ȼ/kg. The Australian dollar was also down, finishing at  US$0.67.  The EMI when expressed in US$ was down 9ȼ/kg to 923ȼ/kg (US).  

For the most part, prices firmed for finer categories in all three markets this week.  17 MPG was up 40 ȼ/kg to finish at 2413 ȼ/kg in Melbourne, and firmed by 25 ȼ/kg to 2350 ȼ/kg in Sydney.

Support across all categories out west sees the WMI up 6% year on year as the Western Market Indicator (WMI) finished the week at 1524ȼ/kg, up 12ȼ. 

Crossbreds overall trended down this week, 28 mpg in Melbourne finished the week down 10ȼ to 360ȼ/kg, with limited supply and movement occurring in Sydney.

Cardings were up this week in Fremantle to 925 ȼ and were up slightly in Melbourne (919 ȼ). There was no change to Sydney cardings at 928 ȼ.  

We are still witnessing considerable volumes heading to the market, as has been the case for much of this calendar year.  Another 48,389 bales were offered to buyers, with the market clearing 43,055.

Pass-in rates trended down 15% week on week to 11%.

Early December was the last time we saw weekly bales sold sit below the seasonal weekly average sales volume-Currently at 36,000.  

This week on Mecardo, Andrew Woods continues the analysis of Vegetable fault in wool.  While finer merino categories have strong seasonal patterns in VM levels, broader types typically don’t.  Good seasons mean more VM in the eastern states.  Finer categories will find some respite from VM discounts towards the middle of the selling season but for broader types, the VM supply cycle moves slower.

The week ahead….

Another significant volume over 51 000 bales is expected to be offered next week across all three markets.

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Data sources: AWEX, AWI, Mecardo

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