The recent positive market movement came to a halt this week, with almost all sectors losing ground.
An increased offering as a result of the recent rises proved too much for the trade to absorb with price reductions across the board, and a resulting sharp increase in the pass-in rate.
The Eastern Market Indicator (EMI) fell this week, losing 27ȼ to close at 1,422ȼ. The Australian dollar lifted continued to strengthen improving by 0.43 ȼ with the AUD quoted at US$0.7167. This resulted in the EMI in US dollar terms easing by 13 cents to settle at 1019ȼ.
The Western Market Indicator also fell, losing 49ȼ to finish the week at 1443ȼ. Fremantle sold 9,203 bales while passing in 27.6% of the offering.
Falls for the merino section were in the range of 20 to 50 ȼ, with the only exception being the Melbourne 16.5 MPG which improved by 23ȼ. It was noted that the fine wool market when viewed in other currencies was not mirroring the same easing as the Au$ price has.
Crossbred wools gave up 17 to 40ȼ in line with the overall falls. Cardings on the other hand were stronger, Sydney cardings lifted 3ȼ, Melbourne gained 20ȼ and Fremantle rose by 7ȼ.
The national offering rose by almost 5,000 bales, with 46,359 bales offered. The national pass-in rate on the back of the softer market was up markedly to 17.4% which resulted in 38,305 bales sold, 700 bales more than the last sale.
Of broader interest in the textile market, the return of China from holidays caused polyester prices to rise sharply for the week, while cotton prices reached new peaks for the week although there were reports that the cotton market may be peaking.
On Mecardo this week (view article here), Andrew Woods looked at the current market where fine merino wool is outperforming its “wool cousins”. Fine merino premiums remain at high levels by historical standards. The question is how long will they remain at these levels. History suggests that after mid-2022 the current cycle of high fine micron premiums will be getting “old” with the implication of the risk of lower premiums.
The week ahead….
Next week another large offering of 55,802 bales listed with all centres selling, with Melbourne hosting a specialty Tasmanian sale consisting of 6,310 bales.
With the eternal battle between enterprises for farm resources continuing, it is interesting to stand back and see what has changed and what hasn’t between
Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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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.
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.
Superfine & Cardings buck downward market
The Eastern Market Indicator (EMI) fell this week, losing 27ȼ to close at 1,422ȼ. The Australian dollar lifted continued to strengthen improving by 0.43 ȼ with the AUD quoted at US$0.7167. This resulted in the EMI in US dollar terms easing by 13 cents to settle at 1019ȼ.
The Western Market Indicator also fell, losing 49ȼ to finish the week at 1443ȼ. Fremantle sold 9,203 bales while passing in 27.6% of the offering.
Falls for the merino section were in the range of 20 to 50 ȼ, with the only exception being the Melbourne 16.5 MPG which improved by 23ȼ. It was noted that the fine wool market when viewed in other currencies was not mirroring the same easing as the Au$ price has.
Crossbred wools gave up 17 to 40ȼ in line with the overall falls. Cardings on the other hand were stronger, Sydney cardings lifted 3ȼ, Melbourne gained 20ȼ and Fremantle rose by 7ȼ.
The national offering rose by almost 5,000 bales, with 46,359 bales offered. The national pass-in rate on the back of the softer market was up markedly to 17.4% which resulted in 38,305 bales sold, 700 bales more than the last sale.
Of broader interest in the textile market, the return of China from holidays caused polyester prices to rise sharply for the week, while cotton prices reached new peaks for the week although there were reports that the cotton market may be peaking.
On Mecardo this week (view article here), Andrew Woods looked at the current market where fine merino wool is outperforming its “wool cousins”. Fine merino premiums remain at high levels by historical standards. The question is how long will they remain at these levels. History suggests that after mid-2022 the current cycle of high fine micron premiums will be getting “old” with the implication of the risk of lower premiums.
The week ahead….
Next week another large offering of 55,802 bales listed with all centres selling, with Melbourne hosting a specialty Tasmanian sale consisting of 6,310 bales.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources:
AWEX, AWI, Mecardo
Categories
Have any questions or comments?
History of the Southern hemisphere sheep flock
The recent AWPFC forecast for wool production to be down to levels of the early 1920s (and 2019) warrants a look at what has been
Wool production changes across Australia’s sheep regions
With the eternal battle between enterprises for farm resources continuing, it is interesting to stand back and see what has changed and what hasn’t between
More of the same for wool
Compared to last week it was a similar offering, same pass-in rate, and limited market moves. The wool market delivered again on its 2024 theme
Lower volumes and finer wools
Change in wool supply is always an issue with regard to the relative price of wool of varying quality (be that breed, micron, staple length,
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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.
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.