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 After 3.3% of the original rostered offering was withdrawn prior to sale, the pass-in rate rose as a result of the weaker market, lifting to 17.9% of the offering, as a result, 30,955 bales were sold, just 500 more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.
This week’s market continued to show stronger prices despite the increased bales on offer as sellers responded to the rising market. The Eastern Market Indicator
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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”
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Have any questions or comments?
Merino wool price cycles
Merino (and crossbred) wool prices appear to be working through the bottom of a price cycle, driven by weak economic conditions in Europe and China
Supply pressure spooks sellers
It can be difficult to see the forest for the trees at times, particularly when the details have presented the best opportunities for wool sellers
The market continues positive start to 2025
This week’s market continued to show stronger prices despite the increased bales on offer as sellers responded to the rising market. The Eastern Market Indicator
AWTA volumes – east looks normal and the west continues to downsize
It is not hard to find doom and gloom commentary about the wool industry, which is fairly typical of the wool and sheep industries swinging
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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.
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.