A steady result over the two-day sales after the strong January open to wool sales was observed this week, with AWI calling the week a comparatively sedate market.
Buyers were happy to accumulate supply but showed little interest in pushing prices higher.
The Eastern Market Indicator dropped 6¢ or 0.5% for the week, to close at 1285¢.
The AUD was slightly softer down to US$0.761 which saw the EMI in USD terms finish 6 cents weaker at 979¢ or 0.6% down on last week. In contrast, Fremantle, rose slightly for the week gaining 15¢, settling at 1313¢.
A general air of confidence prevailed, following the 130-cent lift for the EMI in January, which AWEX reported was the largest January rise in a decade; the steady result this week will be considered a good outcome.
Last week Mecardo reported that Fremantle selling last had lost much of the momentum and demand of earlier in the week and the market fell. This week Fremantle recovered that and posted 20 to 50 cent rises for its 18 to 21 MPG types.
Crossbred types continued recent upward movements with another rise, although the 32 MPG was marginally cheaper.
Cardings were cheaper in all centres, although it was only 3 cents lower in Melbourne, while Sydney was down 8 and Fremantle off 38 cents.
AWEX reported that 45,126 bales were offered, 5.4% withdrawn and 9.3% passed-in, resulting in 40,924 bales sold. This resulted in another weekly lift in sales, up 3,382 on last week. The last 4 weeks have averaged 41k bales per week, a good indicator of improving demand. The average clearance season to date continues to lift, the seasons average now up to 30,413 bales per week. Comparatively, last season the weekly average clearance was 26,500 bales.
This week on Mecardo, Andrew Woods looked at seasonal patterns in the 21-micron category. There is a high negative correlation between supply and price for the 21-micron category in seasonal pattern terms. It is much less so in Australian dollar terms although, the correlation is quite marked in the spring and non-existent in the second half of the season. The seasonal price pattern in the 21 MPG looks to be primarily driven by supply, with demand a smaller secondary influence.
The week ahead….
Another big offering of almost 53,800 bales is rostered for next week, with Melbourne, Sydney & Fremantle selling over two days. With a solid performance this week, and Fremantle ending the week strongly, the market is set for another sound result.
Wool production volumes have been under strong downward pressure during the past year as a combination of dry seasonal conditions, increased costs, and low prices
Despite early buyer interest in the reduced supply, softer demand for finer Merino weighed on the market, while the crossbreds and courser segments showed resilience.
Non-mulesed accreditation is a stepping stone to qualification of various quality schemes, which in turn are stepping stones to premiums in the greasy wool market
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.
Steady is good
The Eastern Market Indicator dropped 6¢ or 0.5% for the week, to close at 1285¢.
The AUD was slightly softer down to US$0.761 which saw the EMI in USD terms finish 6 cents weaker at 979¢ or 0.6% down on last week. In contrast, Fremantle, rose slightly for the week gaining 15¢, settling at 1313¢.
A general air of confidence prevailed, following the 130-cent lift for the EMI in January, which AWEX reported was the largest January rise in a decade; the steady result this week will be considered a good outcome.
Last week Mecardo reported that Fremantle selling last had lost much of the momentum and demand of earlier in the week and the market fell. This week Fremantle recovered that and posted 20 to 50 cent rises for its 18 to 21 MPG types.
Crossbred types continued recent upward movements with another rise, although the 32 MPG was marginally cheaper.
Cardings were cheaper in all centres, although it was only 3 cents lower in Melbourne, while Sydney was down 8 and Fremantle off 38 cents.
AWEX reported that 45,126 bales were offered, 5.4% withdrawn and 9.3% passed-in, resulting in 40,924 bales sold. This resulted in another weekly lift in sales, up 3,382 on last week. The last 4 weeks have averaged 41k bales per week, a good indicator of improving demand. The average clearance season to date continues to lift, the seasons average now up to 30,413 bales per week. Comparatively, last season the weekly average clearance was 26,500 bales.
This week on Mecardo, Andrew Woods looked at seasonal patterns in the 21-micron category. There is a high negative correlation between supply and price for the 21-micron category in seasonal pattern terms. It is much less so in Australian dollar terms although, the correlation is quite marked in the spring and non-existent in the second half of the season. The seasonal price pattern in the 21 MPG looks to be primarily driven by supply, with demand a smaller secondary influence.
The week ahead….
Another big offering of almost 53,800 bales is rostered for next week, with Melbourne, Sydney & Fremantle selling over two days. With a solid performance this week, and Fremantle ending the week strongly, the market is set for another sound result.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
Categories
Have any questions or comments?
Merino and non-merino wool volumes in Australia
Wool production volumes have been under strong downward pressure during the past year as a combination of dry seasonal conditions, increased costs, and low prices
Crossbreds outshine merino in tight week
Despite early buyer interest in the reduced supply, softer demand for finer Merino weighed on the market, while the crossbreds and courser segments showed resilience.
State of origin in non-mulesed wool
Non-mulesed accreditation is a stepping stone to qualification of various quality schemes, which in turn are stepping stones to premiums in the greasy wool market
Quiet week as winter approaches
The wool market posted a modest gain this week, with the Eastern Market Indicator (EMI) rising one cent to close at 1,204 cents per kilogram.
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.