No one would be getting too excited about the wool sale results this week, however the slightly improved price outcome across almost all categories was a welcome relief after three weeks of falling markets. Despite the stable result this week, USD quotes for the 18 to 22 MPGs all continue to hold at the bottom of their recent trading ranges.

The Eastern Market Indicator (EMI) lifted by 6¢ this week to close at 1,116¢ while the Australian dollar eased slightly to US$0.692 which influenced the EMI in USD terms to lift by a more modest 2¢ to 773¢. The Western Market Indicator picked up 9 cents from the previous sale to settle at 1,85¢.

Growers offered 30,821 bales this week, and with a reduced pass-in rate of 5.1% as a result of the firm market, 29,264 bales were sold, 4,500 more than last week.

Mecardo reported this week that if the current trend continues of growers electing to pass-in wool and hold, the available stocks including production of fresh shorn wool this year will be back near the past decade level of 2.0 million bales. Should this trend be continued total bales available for export in season 2020-21 could reach 2.4 million, a supply volume not seen since 2005-06.

This week Fine Merino types were the best performer lifting 10 to 25 cents, while 18.5 MPG and stronger improved by 5 cents.

The Crossbred sector recovered much of last weeks fall to post a 15-cent lift, while skirtings were similarly improved.

Cardings failed to catch on to the stronger market with 20 cent falls reported.

Next week

Next week all centres sell with 36,712 bales on offer. This is the final sale before the winter recess. Exporters will be working hard to secure new orders for the sale resumption at a time of great uncertainty.

Have any questions or comments?

We love to hear from you!

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: Riemann, AWEX, Mecardo

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services
Wool sheep moving through yards
Wool

Upward trend continues

The second week of sales for 2021 was described as exhibiting “keen competition” on the large offering. The positive market continued up to the last

Read More »
Wool

VM levels changing

After three tough years in eastern Australia, good rainfall in 2020 has been a blessed relief for most regions. With a change in seasonal conditions

Read More »

Don’t have an account with us? Join free.

You can have full premium access to all of our content with a monthly or annual subscription. 

Alternatively, create a free account to access our Insights blog and two free premium article a month!

Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
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.

Photo of a farmer surrounded by Merino sheep in dusty yards
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. 

Image of harvested grain pouring into a chaser bin
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.