Sellers reduced the offering in response to the recent weaker market, however the falling prices continued, with the only positive movements recorded in the Crossbred section.
The Eastern Market Indicator (EMI) this week fell by 10ȼ to sit at 1186 ȼ/kg, while in US $ terms it was also easier giving up 5ȼ to sit at 779 ȼ/kg.
Prices continued their downward trend in all selling centres this week. Finer Merino fleece wools (16.5μm) continue to be out of favour with Merino skirtings following the trajectory of the fleece sector. Crossbreds had a solid week with all MPGs posting positive gains. The national offering contracted this week, with 37,757 bales offered for sale (12,148 bales fewer than last week). The national pass-in rate lifted 1.7% to 9.6%.
Andrew Woods this week looks at the profile of the New Zealand wool clip (read here). New Zealand is the big broad crossbred wool producer and exporter, as well as having a good quality merino clip which is similar in size to the New England regional clip. So, it is valuable to know what is going on in terms of production and price across the Tasman Sea.
While for the bulk of the New Zealand crossbred clip, Australian production is insignificant, there is a point of crossover for 30 micron and finer, where supply from both countries is of interest. For merino production, New Zealand production is of interest for the 17-micron and finer, as it is the equivalent of a large region of good quality production such as New England in NSW (plus Traprock for the Queenslanders). Supply is an important driver of relative prices (premiums and discounts) in the greasy wool market, so the New Zealand supply is important for these categories.
Sales resume on 30 January with 36,535 bales currently rostered for sale.
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.
Softer wool market
Prices continued their downward trend in all selling centres this week. Finer Merino fleece wools (16.5μm) continue to be out of favour with Merino skirtings following the trajectory of the fleece sector. Crossbreds had a solid week with all MPGs posting positive gains. The national offering contracted this week, with 37,757 bales offered for sale (12,148 bales fewer than last week). The national pass-in rate lifted 1.7% to 9.6%.
Andrew Woods this week looks at the profile of the New Zealand wool clip (read here). New Zealand is the big broad crossbred wool producer and exporter, as well as having a good quality merino clip which is similar in size to the New England regional clip. So, it is valuable to know what is going on in terms of production and price across the Tasman Sea.
While for the bulk of the New Zealand crossbred clip, Australian production is insignificant, there is a point of crossover for 30 micron and finer, where supply from both countries is of interest. For merino production, New Zealand production is of interest for the 17-micron and finer, as it is the equivalent of a large region of good quality production such as New England in NSW (plus Traprock for the Queenslanders). Supply is an important driver of relative prices (premiums and discounts) in the greasy wool market, so the New Zealand supply is important for these categories.
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
Categories
Prices rise after the Easter recess
Prices have risen again after the Easter recess with the EMI up 39¢ to 1825¢. This price rises comes after an increased bale offering up
Varying estimates of the Australian sheep flock
There is always some variation between flock size estimates, depending on the time of year the estimate is made, the quality of survey and the
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
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.