The Eastern Market Indicator (EMI) lifted 36ȼ this week, closing at 1271ȼ/kg. With the Aussie dollar losing value (-2.86ȼ) to sit at 0.625US, the EMI in US terms fell by 13ȼ to 794ȼ/kg.
The gains were widespread across all MPG categories and all centres. The WMI posted a 44ȼ lift, with a special mention to the 18.5 MPG in Fremantle which lifted 109ȼ for the week.
We again noted that the better styles and wool with RWS accreditation were keenly sought.
AWEX noted that the sharp decline in the Au$ value put the EMI in US$ at its lowest point since October 2020, when Covid issues in Chinese mills eroded buyer confidence.
Skirtings were caught up in the stronger market, with a mention in AWEX reports that low VM lots in WA attracted strong competition, while crossbred wool showed a modest positive result. Carding’s indicators were mixed, Sydney plus 8ȼ while Fremantle & Melbourne were down 6ȼ & 1ȼ respectively.
A reduced offering came forward this week of 32,107 bales, as growers held back following the weaker trend over preceding weeks. The stronger market saw the national pass in rate average 4.8% with 30,553 bales sold, still below the 3-year average and close to last week’s clearance. Average bales sold this season are now sitting at 34,641 bales per week.
This week on Mecardo Andrew Woods looked at the relationship between seasonal conditions and the average merino micron. With average to good seasonal conditions in most wool regions, questions about fibre diameter in merinos is cropping up. Change in the average merino fibre diameter has implications for the categories on the edge of the distribution (fine and broad), which flows through the relative prices for the different micron categories.
The week ahead….
Next week we have 37,122 bales rostered for auctions across the three main selling centres, with Sydney conducting a designated Super Fine sale.