Another reduced offering and a weaker Au$ conspired to cause a general lift in the wool market, with the EMI posting its first positive result in more than 12 weeks.
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.
The mention of an El Nino has the scribes seeking forecasts and projections for agricultural commodities through production to price. This article takes a look
The main southern hemisphere wool exporters (from west to east; South Africa, Australia, New Zealand, Argentina and Uruguay) are by default the major suppliers of
The higher Australian dollar has prompted questions about the likely impact on local extensive agricultural commodity prices. Mecardo has covered this topic before. The relationship
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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.
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.
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.
U turn for the wool market
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.
Have any questions or comments?
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Click on graph to expand
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Data sources: AWEX, Mecardo
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Have any questions or comments?
Return to normal volumes boost prices
The Wool market rose again this week by 51¢ taking the EMI to 1767¢. Supply this week was lower after the previous weeks return sale
Another look at the implications of an El Nino on rainfall
The mention of an El Nino has the scribes seeking forecasts and projections for agricultural commodities through production to price. This article takes a look
A look at southern hemisphere merino wool production
The main southern hemisphere wool exporters (from west to east; South Africa, Australia, New Zealand, Argentina and Uruguay) are by default the major suppliers of
Will a rising Australian dollar impact commodity prices?
The higher Australian dollar has prompted questions about the likely impact on local extensive agricultural commodity prices. Mecardo has covered this topic before. The relationship
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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.