The tone of this week’s market was one of stability, with AWEX reporting the market posted another small increase.
The finer end of the market was the strongest performer, although solid demand was reported across all merino types.
The Eastern Market Indicator (EMI) gained 5ȼ for the week to close at 1,346ȼ. The Australian dollar was again slightly easier, again drifting downwards by 0.5 cents with the US/Au rate quoted at US$0.717. The EMI in US dollar terms was down slightly, falling 3ȼ to settle at 965ȼ.
The Melbourne 16.5 MPG lifted 20ȼ, while the 19 MPG remained as per last week improving just 2ȼ and the 21 MPG again lifted, this week by 8ȼ.
Fremantle also posted a lift this week, but the driver of the market came from the 19.5 MPG and broader, while the finer end of the merino section eased marginally. AWEX reported the Western Market Indicator (WMI) lifted 4ȼ cents to 1405ȼ. Fremantle sold 7,348 of the 7,841 bales offered with a low 6.3% of offered bales passed in.
The national offering again was slightly larger with 39,577 bales offered, 1,800 more than last week. The national pass-in rate was 10.0%, which resulted in 35,616 bales sold, which was 729 more than last week.
The crossbred indicators were marginally easier, with the 28 MPG quoted down 8ȼ while the 30 MPG gave up 5ȼ.
Cardings were steady on last week’s quotes.
Crossbred wool prices have been at record low levels for this season. On Mecardo this week (view article here), Andrew Woods looked at the price relationship between crossbred wool and acrylic prices. The 28 MPG has dropped to below parity with acrylic staple fibre prices, an unprecedented level in 33 years. Since early 2020, the 28 MPG and acrylic staple fibre prices have diverged markedly. In relative terms, as well as outright terms, the 28 MPG is extraordinarily cheap and hopefully this will spark some new demand.
The week ahead….
Next week a similar offering of 41,362 bales is listed for sale in Fremantle, Melbourne & Sydney with all centres selling on Tuesday & Wednesday.
Sydney and Fremantle markets made up for lost time with big improvements across both the broad and merino fleece categories this week. The lower Aussie
Back from the Easter recess, results were mixed between selling centres with the Merino segment fairly steady in Sydney, stronger in Melbourne and weaker in
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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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Steady market with fine wool the driver
The Eastern Market Indicator (EMI) gained 5ȼ for the week to close at 1,346ȼ. The Australian dollar was again slightly easier, again drifting downwards by 0.5 cents with the US/Au rate quoted at US$0.717. The EMI in US dollar terms was down slightly, falling 3ȼ to settle at 965ȼ.
The Melbourne 16.5 MPG lifted 20ȼ, while the 19 MPG remained as per last week improving just 2ȼ and the 21 MPG again lifted, this week by 8ȼ.
Fremantle also posted a lift this week, but the driver of the market came from the 19.5 MPG and broader, while the finer end of the merino section eased marginally. AWEX reported the Western Market Indicator (WMI) lifted 4ȼ cents to 1405ȼ. Fremantle sold 7,348 of the 7,841 bales offered with a low 6.3% of offered bales passed in.
The national offering again was slightly larger with 39,577 bales offered, 1,800 more than last week. The national pass-in rate was 10.0%, which resulted in 35,616 bales sold, which was 729 more than last week.
The crossbred indicators were marginally easier, with the 28 MPG quoted down 8ȼ while the 30 MPG gave up 5ȼ.
Cardings were steady on last week’s quotes.
Crossbred wool prices have been at record low levels for this season. On Mecardo this week (view article here), Andrew Woods looked at the price relationship between crossbred wool and acrylic prices. The 28 MPG has dropped to below parity with acrylic staple fibre prices, an unprecedented level in 33 years. Since early 2020, the 28 MPG and acrylic staple fibre prices have diverged markedly. In relative terms, as well as outright terms, the 28 MPG is extraordinarily cheap and hopefully this will spark some new demand.
The week ahead….
Next week a similar offering of 41,362 bales is listed for sale in Fremantle, Melbourne & Sydney with all centres selling on Tuesday & Wednesday.
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Data sources: AWEX, AWI, 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.