Wool bales

The Australian wool market recorded its fourth consecutive increase, with AWEX reporting that all categories either posted a rise or at the least, were unchanged. The finer merino types along with the crossbred offering were the strongest performers.

The Eastern Market Indicator (EMI) gained a further 14ȼ for the week to close at 1,360ȼ. Across the past four weeks the EMI has appreciated 41ȼ. The Australian dollar again moved lower, falling by 0.3 cents with the US/Au rate quoted at US$0.714. The EMI in US dollar terms improved slightly, rising 5ȼ to settle at 971ȼ. 

 It was green across the board for 21 and lower microns, with lifts ranging from 4 to 41ȼ. The 18 micron in Melbourne lifted the most on the week previous, up 41ȼ to settle at 1855ȼ.

 The Western Market Indicator rose by 12ȼ to finish the week at 1417ȼ, with the price lifts across all categories there from 5 to 33ȼ, with the 18.5 MPG the standout in the west. Fremantle sold just 4,395 bales with 4,861 on offer, with 9.6% of offered bales passed in.

The national offering was 3% smaller than the previous week with 37,013 bales offered, 2,564 less than last week. The national pass-in rate was also much lower at 6.9% which resulted in 34,453 bales sold, 1,163 less than last week.

The crossbred indicators were very strong, with the 28 MPG quoted rising 25ȼ or 6.3%, while the 30 MPG also lifted 25ȼ or 7.5%.

Cardings all lifted, up 12ȼ in Melbourne, 15ȼ in Sydney and 10ȼ in Fremantle.      

On Mecardo this week (view article here), Andrew Woods looked at the Australian sheep flock as it continues to expand which is good news all around, after the contractions of recent years. Will the increased numbers impact on price for wool and sheep meat? For wool the story, it’s quite varied across breed and micron categories, and he notes that price impact as the flock grows is unlikely.

The week ahead….

Next week a larger offering of 42,036 bales is listed for sale in Fremantle, Melbourne & Sydney with all centres selling on Tuesday & Wednesday. Next week is the final sale before the Christmas break.

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Data sources: AWEX, AWI, Mecardo

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