Across the week, the Eastern Market Indicator (EMI) picked up 8ȼ to settle at 1,428ȼ. The Australian dollar remained stable at US$0.7463 which put the EMI in US dollar terms up 16 to 1,066ȼ.
The west was again the strong market, with the Western Market Indicator (WMI) lifting by 20ȼ to finish at 1462ȼ.
For the second week of the new season, a large offering was again on the table, which isn’t unusual for the new financial year. 49,003 bales were offered, with a pass in rate of 13.4%, leaving 42,441 bales sold. The first two weeks of the 2021/22 season has seen on average just under 10,000 bales per week more sold compared to last year.
Again, it was the medium microns that generally outperformed the finer end of the wool clip. With Melbourne only selling on the final day last week where it performed strongly, Fremantle and Sydney quickly picked this sentiment up with strong early performances.
After the correction between selling centres was made, the market for 19 to 20 MPG showed slight improvement, however other MPG’s all eased compared to previous week, with the 16.5 MPG most impacted dropping 83 cents.
This week the crossbreds were the star performers, picking up all of last week’s fall to post gains of 24 to 60 cents. Notable the 28 MPG was up 60 cents in Sydney and 41 cents in Melbourne.
Cardings moved up 11ȼ in Melbourne but fell by 11ȼ in Sydney with Fremantle adding 2ȼ for the week.
This week on Mecardo, Andrew Woods looked at the sheep and lamb offtake data.
From the sheep and lamb offtake data it appears the flock expansion is on track to continue (view article here). For wool supply, the weakness in this analysis is that it does not tell us what breed of sheep is being added to the flock.
Solid sale before recess
Across the week, the Eastern Market Indicator (EMI) picked up 8ȼ to settle at 1,428ȼ. The Australian dollar remained stable at US$0.7463 which put the EMI in US dollar terms up 16 to 1,066ȼ.
The west was again the strong market, with the Western Market Indicator (WMI) lifting by 20ȼ to finish at 1462ȼ.
For the second week of the new season, a large offering was again on the table, which isn’t unusual for the new financial year. 49,003 bales were offered, with a pass in rate of 13.4%, leaving 42,441 bales sold. The first two weeks of the 2021/22 season has seen on average just under 10,000 bales per week more sold compared to last year.
Again, it was the medium microns that generally outperformed the finer end of the wool clip. With Melbourne only selling on the final day last week where it performed strongly, Fremantle and Sydney quickly picked this sentiment up with strong early performances.
After the correction between selling centres was made, the market for 19 to 20 MPG showed slight improvement, however other MPG’s all eased compared to previous week, with the 16.5 MPG most impacted dropping 83 cents.
This week the crossbreds were the star performers, picking up all of last week’s fall to post gains of 24 to 60 cents. Notable the 28 MPG was up 60 cents in Sydney and 41 cents in Melbourne.
Cardings moved up 11ȼ in Melbourne but fell by 11ȼ in Sydney with Fremantle adding 2ȼ for the week.
This week on Mecardo, Andrew Woods looked at the sheep and lamb offtake data.
From the sheep and lamb offtake data it appears the flock expansion is on track to continue (view article here). For wool supply, the weakness in this analysis is that it does not tell us what breed of sheep is being added to the flock.
The week ahead….
The wool auctions now begin a three week recess with sales set to resume in the week beginning 9th August.
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
Categories
Have any questions or comments?
Solid sale before recess
The final sale before the traditional three-week recess produced a solid result. The national offering remained large as growers responded to recent stronger prices and
Sheep and lamb offtake – an update
It is the start of a new season and a time when the supply chain looks forward in order to assess supply in the coming
Percentiles – July 2021
Mecardo’s Percentiles update for July 2021. Click below to view the latest report Grains Oilseeds Sheep and lambs Cattle Wool Dairy Fuel Percentiles are an important
Seasonal price pattern for 19 micron
Wool auctions go into a three week recess after the sales this week, recommencing in mid-August. Given the volatility in prices during the past two
Don’t have an account with us? Join free.
You can have full premium access to all of our content with a monthly or annual subscription.
Alternatively, create a free account to access our Insights blog and two free premium article a month!
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.
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.