The wool market gains of last week evaporated this week with the market retracing all of the gains of the short-lived rally.
The falls were widespread, with the exception of 17 MPG & finer in Melbourne that posted increases, and also selected good style low CVH which were reported as “keenly sought”.
The Eastern Market Indicator (EMI) fell, losing 32ȼ to 1224ȼ/kg, and with a stronger Aussie dollar (-0.59ȼ to US$0.669), the EMI when expressed in US$ also declined 14ȼ to settle at 820ȼ/kg (US).
The Western Market Indicator also fell in line with the east coast market, falling 38ȼ to finish the week at 1,370ȼ/kg.
The Crossbreds section is in the doldrums, and to reinforce this situation the 28 MPG in Sydney touched 313ȼ during the week, its lowest point on record. In Melbourne 26 MPG lost 24ȼ, while the 30 MPG eased 7ȼ across the week.
Cardings were generally steady, down 4ȼ in Sydney, back 3ȼ in Melbourne and steady in Fremantle.
An increased volume to last week of 37,374 was offered for sale, almost 7,000 up on last week. After 3.3% of the original rostered offering was withdrawn prior to sale, the pass-in rate rose as a result of the weaker market, lifting to 17.9% of the offering, as a result, 30,955 bales were sold, just 500 more than last week.
This week on Mecardo, Andrew Woods looked at while the merino market has come off the boil since mid-2022, as have apparel fibre markets generally, the very fine end of the merino micron distribution continues to sell at high price levels. Structurally, the merino market for these finer merino micron categories has changed dramatically since the 1990s, with much-increased supply driving prices much lower from the mid-1990s through 2005-2010. The structural change was common to all of the finer micron categories. Who says the wool market does not change?
The week ahead….
Next week sales have rostered an even larger offering of 44,775 bales for sale across the three selling centres. Fremantle & Sydney are selling on Tuesday & Wednesday, while Melbourne will have a three-day sale to cater for the increased offering.
The latest release of Meat and Livestock Australia’s Industry Projections has a pertinent section on the structural shift in the national flock. Survey results continue
South Africa remains the major supplier of RWS-accredited merino wool for 19 micron and broader merino wool. This article looks at the South African merino
Varied seasonal conditions in different regions during the past year (ranging from good to awful), low prices and the live sheep export issue in Western
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.
That was short lived!
The Eastern Market Indicator (EMI) fell, losing 32ȼ to 1224ȼ/kg, and with a stronger Aussie dollar (-0.59ȼ to US$0.669), the EMI when expressed in US$ also declined 14ȼ to settle at 820ȼ/kg (US).
The Western Market Indicator also fell in line with the east coast market, falling 38ȼ to finish the week at 1,370ȼ/kg.
The Crossbreds section is in the doldrums, and to reinforce this situation the 28 MPG in Sydney touched 313ȼ during the week, its lowest point on record. In Melbourne 26 MPG lost 24ȼ, while the 30 MPG eased 7ȼ across the week.
Cardings were generally steady, down 4ȼ in Sydney, back 3ȼ in Melbourne and steady in Fremantle.
An increased volume to last week of 37,374 was offered for sale, almost 7,000 up on last week. After 3.3% of the original rostered offering was withdrawn prior to sale, the pass-in rate rose as a result of the weaker market, lifting to 17.9% of the offering, as a result, 30,955 bales were sold, just 500 more than last week.
This week on Mecardo, Andrew Woods looked at while the merino market has come off the boil since mid-2022, as have apparel fibre markets generally, the very fine end of the merino micron distribution continues to sell at high price levels. Structurally, the merino market for these finer merino micron categories has changed dramatically since the 1990s, with much-increased supply driving prices much lower from the mid-1990s through 2005-2010. The structural change was common to all of the finer micron categories. Who says the wool market does not change?
The week ahead….
Next week sales have rostered an even larger offering of 44,775 bales for sale across the three selling centres. Fremantle & Sydney are selling on Tuesday & Wednesday, while Melbourne will have a three-day sale to cater for the increased offering.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
Photo Credit: Clare Offley “Cleaning Up”
Categories
Have any questions or comments?
Merino component of flock under pressure
The latest release of Meat and Livestock Australia’s Industry Projections has a pertinent section on the structural shift in the national flock. Survey results continue
Battle of the Merino: South Africa vs Australia
South Africa remains the major supplier of RWS-accredited merino wool for 19 micron and broader merino wool. This article looks at the South African merino
Merino market lifts
The Merino section of the market took the credit for the modest improvement seen at auctions this week. The last two weeks of selling have
Drop in WA wool substantial but not unprecedented
Varied seasonal conditions in different regions during the past year (ranging from good to awful), low prices and the live sheep export issue in Western
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.