The wool market has now been in a relatively tight trading range since May last year with AWEX reporting that the EMI over this period has ranged just 134 cents. A noticeable factor is the decline of wool testing 40 N/KT and better, with just 27% of the fleece offering above this threshold.
This phenomenon is causing buyers to bid up on high tensile
strength lots to meet orders, while also rewarding wool with low Mid-Point
breaks as well. The Eastern Market Indicator (EMI) lost a total of 5¢ across
the week to settle at 1,137¢/kg. With the AUD again softer this week, the EMI
in USD terms ended at 743¢, down 3¢ week on week.
The National offering of 38,426 bales was a big increase
compared to last week. Buyers were happy to take on the larger offering, with a
pass-in rate of 8.8% nationally. Clearance was well up with 35,050 bales sold
to the trade which was 3,402 more than last week and well above the season-to-date
average 31,581 bales.
17.5 MPG and finer found support however 18 to 20 MPG
indicators all gave up ground. In Melbourne, the 22 MPG was the star lifting 18
cents on the week.
All Merino fleece types and descriptions showed a weaker
trend in Fremantle over the week, falling between 1 and 10 cents across the
17.5 to 20 MPG. The Western Market Indicator also retreated 3¢ over the week to
1,273¢.
Crossbred results were also weaker but showed more mixed
results, with 28-30MPG down 3 to 5¢ while 25 & 26 fell 13 & 36 cents
respectively.
The issue of mulesing continues to be top of mind among
apparel brands and their purchasing decisions. For Australian wool growers,
this raises the issue of whether to mules or not, and then how to secure some
benefit if the decision is made not to mules. Andrew Woods takes a look at the
interaction between quality scheme accreditation and non-mulesed status at
Australian greasy wool auctions (
read more here). For non-mulesed merino fleece to achieve useful premiums
at auction accreditation to a quality scheme is required.
Next week
Next week’s national offering is forecast at 34,494 bales with Melbourne and Sydney selling on Tuesday and Wednesday, and sales in Fremantle on Tuesday only. Sydney is a designated Super Fine sale.
The increased offering of wool bales stirred a range of outcomes this week, particularly affecting the finer micron wool segments. On balance, the Eastern Market
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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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Stable market continues
This phenomenon is causing buyers to bid up on high tensile strength lots to meet orders, while also rewarding wool with low Mid-Point breaks as well. The Eastern Market Indicator (EMI) lost a total of 5¢ across the week to settle at 1,137¢/kg. With the AUD again softer this week, the EMI in USD terms ended at 743¢, down 3¢ week on week.
The National offering of 38,426 bales was a big increase compared to last week. Buyers were happy to take on the larger offering, with a pass-in rate of 8.8% nationally. Clearance was well up with 35,050 bales sold to the trade which was 3,402 more than last week and well above the season-to-date average 31,581 bales.
17.5 MPG and finer found support however 18 to 20 MPG indicators all gave up ground. In Melbourne, the 22 MPG was the star lifting 18 cents on the week.
All Merino fleece types and descriptions showed a weaker trend in Fremantle over the week, falling between 1 and 10 cents across the 17.5 to 20 MPG. The Western Market Indicator also retreated 3¢ over the week to 1,273¢.
Crossbred results were also weaker but showed more mixed results, with 28-30MPG down 3 to 5¢ while 25 & 26 fell 13 & 36 cents respectively.
The issue of mulesing continues to be top of mind among apparel brands and their purchasing decisions. For Australian wool growers, this raises the issue of whether to mules or not, and then how to secure some benefit if the decision is made not to mules. Andrew Woods takes a look at the interaction between quality scheme accreditation and non-mulesed status at Australian greasy wool auctions ( read more here). For non-mulesed merino fleece to achieve useful premiums at auction accreditation to a quality scheme is required.
Next week
Next week’s national offering is forecast at 34,494 bales with Melbourne and Sydney selling on Tuesday and Wednesday, and sales in Fremantle on Tuesday only. Sydney is a designated Super Fine sale.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: Reuters, SovEcon, USDA, Next Level Grain Marketing, Government Brazil, Bloomberg, Mecardo
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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.