There were no auctions in the west this week, which brought a lower than typical bale offering. However demand leaned on the weak side relative to the last few months, which still caused indicators to fall.
The Eastern Market Indicator (EMI) fell by 8¢ this week to 1,901¢ in Australian dollar (AUD) terms as the bale offering dropped 26% week on week to 21,230 bales. The AUD rose by 0.7% on the United States Dollar (USD) to 69.88¢ which was enough to bring a rise to the EMI in USD terms, up by 3¢ to 1,328¢. The pass in rate climbed again this week to 8.5% despite the lower offering week on week. Bales sold only totalled 19,415, which is 38% below the average for the past 12 months and the lowest number of bales sold since the 11th of September 2020.
Looking at local market indicators, Sydney fell by 6¢ to 1962¢ and Melbourne was down by 9¢ to 1860¢.
In Sydney, the finer end of the spectrum eased with 17 MPG losing 5¢ to 2583¢ as did the medium end of merino wool with 20 MPG down by 14¢ to 2148¢. However, there was a sweet spot between 18 MPG, which rose by 24¢ to 2522¢ and 19 MPG which was up by 7¢ to 2309¢. Crossbred wool 26 MPG fell by 5¢ to 1160¢ as did cardings, down by 36¢ to 1195¢
In Melbourne, losses were felt across the board, with 17 MPG down by 13¢ to 2591¢, 19 MPG down by 2¢ to 2298¢ and 20 MPG down by 8¢ to 2151¢. Further falls in crossbred wool saw 26 MPG down by 10¢ to 1140¢ and 28 MPG down by 23¢ to 832¢. Cardings also fell by 23¢ to 1162¢.
This week in Mecardo, with wool prices having performed well in the past year, Andrew Woods explores how much of this rise is sustainable, specifically for 20-22 micron wool. Modelling the trend price ratio to synthetic fibre prices is a moving target, depending largely on the supply of 20-22 micron wool (article available here).
The week ahead….
Next week, the bale offering is expected to increase significantly by 52% to 32,397 bales. Auctions are scheduled for Tuesday and Wednesday in Sydney and Melbourne and on Tuesday only in Fremantle.
Wool quality varies in response to changing seasonal conditions which is one of the challenges wool processors have to cope with. Quality usually has a
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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.
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Supply limping in winter but buyers don’t appear in a rush
The Eastern Market Indicator (EMI) fell by 8¢ this week to 1,901¢ in Australian dollar (AUD) terms as the bale offering dropped 26% week on week to 21,230 bales. The AUD rose by 0.7% on the United States Dollar (USD) to 69.88¢ which was enough to bring a rise to the EMI in USD terms, up by 3¢ to 1,328¢. The pass in rate climbed again this week to 8.5% despite the lower offering week on week. Bales sold only totalled 19,415, which is 38% below the average for the past 12 months and the lowest number of bales sold since the 11th of September 2020.
Looking at local market indicators, Sydney fell by 6¢ to 1962¢ and Melbourne was down by 9¢ to 1860¢.
In Sydney, the finer end of the spectrum eased with 17 MPG losing 5¢ to 2583¢ as did the medium end of merino wool with 20 MPG down by 14¢ to 2148¢. However, there was a sweet spot between 18 MPG, which rose by 24¢ to 2522¢ and 19 MPG which was up by 7¢ to 2309¢. Crossbred wool 26 MPG fell by 5¢ to 1160¢ as did cardings, down by 36¢ to 1195¢
In Melbourne, losses were felt across the board, with 17 MPG down by 13¢ to 2591¢, 19 MPG down by 2¢ to 2298¢ and 20 MPG down by 8¢ to 2151¢. Further falls in crossbred wool saw 26 MPG down by 10¢ to 1140¢ and 28 MPG down by 23¢ to 832¢. Cardings also fell by 23¢ to 1162¢.
This week in Mecardo, with wool prices having performed well in the past year, Andrew Woods explores how much of this rise is sustainable, specifically for 20-22 micron wool. Modelling the trend price ratio to synthetic fibre prices is a moving target, depending largely on the supply of 20-22 micron wool (article available here).
The week ahead….
Next week, the bale offering is expected to increase significantly by 52% to 32,397 bales. Auctions are scheduled for Tuesday and Wednesday in Sydney and Melbourne and on Tuesday only in Fremantle.
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Data sources: AWEX, Mecardo
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Wool quality varies in response to changing seasonal conditions which is one of the challenges wool processors have to cope with. Quality usually has a
Supply limping in winter but buyers don’t appear in a rush
There were no auctions in the west this week, which brought a lower than typical bale offering. However demand leaned on the weak side relative
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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.
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.
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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.