The wool markets on a roll, spinning another week of positive gains and lighting up the boards greener than a social media feed on National Ag Day. A small offering and weaker AUD helped to engage buyers of Merino fleece, despite more of the same news on the Chinese economy.
With all medium to fine microns steady or improving week on
week, the Eastern Market Indicator (EMI) gained a total of 10¢ to 1,142¢/kg.
This was following last week’s 7¢ gain. The EMI is now at its highest point
since late June. With the AUD falling over the week, the EMI in USD terms ended
at 746¢, down 3¢ week on week. The positive week of sales was against a
backdrop of disappointing economic news. The second stimulus package announced
by the Chinese Government in the last six weeks hasn’t done enough to convince
the market of a turnaround in their economy.
The National offering of 33,633 bales was 1,772 bales lower
than last week. Tighter supply and the strengthening market kept sellers’
content, with a pass-in rate of 5.9% nationally. Interestingly this was a lift
of 1.1% on last week. In the end, 31,648 bales were sold to the trade which was
slightly higher than the season-to-date average 31,377 bales but 6% lower YoY.
17.5 and 18-micron wool in Sydney came under the strongest
turnaround in attention from buyers this week, with the MPG’s gaining 46 and
47¢ respectively. For the fleece sector, stylish, fine lots with good strength
and little vegetable matter were in favour. Further south in Melbourne, it was
also a solid week with all MPGs between 16.5 and 22-micron lifting between 7
and 18¢.
All Merino fleece types and descriptions rose in Fremantle
on Tuesday, with small price variations occurring on Wednesday. All in all, the
Western Market Indicator gained 5¢ over the week to 1,276¢.
Crossbred results were mixed, with 28-30MPG up 3 to 5¢ while
25, 26 and 32 MPG were steady to cheaper. Supply chain expenditure on crossbred
wool remains at low levels this season, compared to the 2010-2019 period.
According to Andrew Woods analysis earlier this week (read more
here), the fall in crossbred volume is helping push prices up and this
could help deliver further increases in price beyond the 20% seen in USD terms
this season to date.
Next week
Next week’s national offering is forecast at 39,616 bales with Melbourne and Sydney selling on Tuesday and Wednesday, and sales in Fremantle on Tuesday.
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
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.
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.
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.
Stimulus falls flat but wool market turns green
With all medium to fine microns steady or improving week on week, the Eastern Market Indicator (EMI) gained a total of 10¢ to 1,142¢/kg. This was following last week’s 7¢ gain. The EMI is now at its highest point since late June. With the AUD falling over the week, the EMI in USD terms ended at 746¢, down 3¢ week on week. The positive week of sales was against a backdrop of disappointing economic news. The second stimulus package announced by the Chinese Government in the last six weeks hasn’t done enough to convince the market of a turnaround in their economy.
The National offering of 33,633 bales was 1,772 bales lower than last week. Tighter supply and the strengthening market kept sellers’ content, with a pass-in rate of 5.9% nationally. Interestingly this was a lift of 1.1% on last week. In the end, 31,648 bales were sold to the trade which was slightly higher than the season-to-date average 31,377 bales but 6% lower YoY.
17.5 and 18-micron wool in Sydney came under the strongest turnaround in attention from buyers this week, with the MPG’s gaining 46 and 47¢ respectively. For the fleece sector, stylish, fine lots with good strength and little vegetable matter were in favour. Further south in Melbourne, it was also a solid week with all MPGs between 16.5 and 22-micron lifting between 7 and 18¢.
All Merino fleece types and descriptions rose in Fremantle on Tuesday, with small price variations occurring on Wednesday. All in all, the Western Market Indicator gained 5¢ over the week to 1,276¢.
Crossbred results were mixed, with 28-30MPG up 3 to 5¢ while 25, 26 and 32 MPG were steady to cheaper. Supply chain expenditure on crossbred wool remains at low levels this season, compared to the 2010-2019 period. According to Andrew Woods analysis earlier this week (read more here), the fall in crossbred volume is helping push prices up and this could help deliver further increases in price beyond the 20% seen in USD terms this season to date.
Next week
Next week’s national offering is forecast at 39,616 bales with Melbourne and Sydney selling on Tuesday and Wednesday, and sales in Fremantle on Tuesday.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: Nutrien Ag Solutions, AWEX, Mecardo
Categories
Have any questions or comments?
Dressing for success in 2025?
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
Apparel fibres continue to drift at low levels
Apparel fibre prices have been drifting lower during 2024, continuing a trend that began in 2023. Merino wool usually follows the lead of the wider
Fine wool shines amid currency slide
Currency played in the favour of wool buyers this week as weakness in the Australian dollar made the purchase price look more attractive to those
Western Australian flock downsizing in real time
The sheep offtake has finally caught up with the general sentiment regarding the flock size. In this article, Mecardo looks at sheep and lamb offtakes
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.
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.
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.