Wool being inspected

In contrast with recent weeks the wool market this week was remarkably steady. AWEX reported that over the previous ten selling days the market fluctuated a total of 561 cents, or 56 cents per day. This week the average EMI movement was just 4.5 cents over the 2 selling days. The cautionary note was that wool with poor tested results or lower style were erratic, with the majority of the passed-in wool coming from this sector.

After falling 30¢ last week, the Eastern Market Indicator (EMI) fell by another 9¢ to close this week at 1150¢. The AUD was slightly firmer at US$0.735 which saw the EMI in USD terms finish 2 cents higher at 846¢. Fremantle gave up 12¢to now sit at 1200¢.

There was generally falls across the board, however the 19.5 MPG in Melbourne, and the 17 MPG & finer in Sydney all found support and ended the week in positive territory.

Crossbred types were hit posting significant falls, with the 28 MPG losing a further 70 cents on top of last week’s fall.

Cardings were a mixed bag, Melbourne fell, Sydney was 30 cents dearer while Fremantle was steady.

A similar offering to last week of 36,500 bales came forward, after 7.6% of the original offering was withdrawn, 32,126 bales sold, almost 2,000 more than last week, with the pass-in rate falling to 12.1% nationally.  

This week on Mecardo we looked at Uruguayan wool production during the past two decades (view article here). The Uruguayan clip has slashed its production of mid-micron wool (22.6 to 29.5 micron), while at the same time it has boosted the supply of its finer micron categories by 134%.

The changes seen in the Uruguayan clip are similar to changes seen in the Australian clip, demonstrating sheep farmers on different sides of the world responding to common international price signals.

The week ahead….

Another large offering of 41,800 bales is rostered for next week with all centres selling on both Tuesday & Wednesday.

This week demonstrated that the market can operate in a steady manner, this will support and provide confidence to buyers and sellers.

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Data sources: AWEX, Mecardo

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