A smaller offering with a reduced percentage of low vegetable matter (VM) wool has pushed the Eastern Market Indicator upward this week. Further price support was found from gun-shy Western sellers and Eastern market buyers scrambling for low VM.
The Eastern Market Indicator (EMI) ended the week at 1310ȼ/kg, up a modest 8 ȼ ( 0.6%) week on week. When expressed in US dollars, the EMI has swung back with a 13ȼ increase to 874 USȼ/kg.
With lots with low vegetable matter becoming harder to come across, bidding has been healthy for those that are found on the auction floor. Sydney had a positive week for the most part, with some of the finer categories down slightly, 17.5MPG was down 8ȼ. In Sydney, 19.5 MPG was best on ground this week up 53ȼ to finish the week at 1595ȼ/kg. Further South to Melbourne, prices were up at the finer end of the spectrum. 17MPG saw a 30ȼ increase to 2230 ȼ/kg.
The Western Market Indicator (WMI) had another modest increase of 7ȼ to 1479ȼ/kg. WA wool sellers haven’t been shy to withdraw lots prior to sale, with 9.3% this week withdrawn, perhaps contributing to the appreciation of pricing out west of late.
No change this week in crossbred markets, 28MPG tracked sideways to 335ȼ/kg in Melbourne.
Cardings were down this week, a 10ȼ decline to 821 ȼ in Sydney, an 8ȼ reduction ending at 826ȼ Melbourne, and 9ȼ down to 810ȼ in Fremantle.
34,720 bales were sold this week nationally, which is a new low mark for the calendar year. With the pass-in rate at 10.6%, the decline in sales volume reflects the level of pre-sale withdrawals as opposed to buyer disinterest. For the 2nd consecutive week sales volumes were below the season’s weekly average (37k bales).
This week on Mecardo, Andrew Woods provides us with an update on the German IFO indices and the implications of the recent positive uptick for Merino prices. The late rebound in 2022 Merino prices was matched by a small improvement in the German Manufacturing Index. A return to neutral economic sentiment is an improvement, but expectations are not yet bullish.
The week ahead….
Expectations volume-wise are much higher than the previous few weeks with 48643 bales scheduled for sale next week. Sydney, Melbourne, and Fremantle will have sales on Tuesday and Wednesday.
Low wool prices, along with dry seasonal conditions, lead to poor sentiment. Given the current low wool prices (and apparel fibre prices generally) the question
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.
Vegetable matter matters
The Eastern Market Indicator (EMI) ended the week at 1310ȼ/kg, up a modest 8 ȼ ( 0.6%) week on week. When expressed in US dollars, the EMI has swung back with a 13ȼ increase to 874 USȼ/kg.
With lots with low vegetable matter becoming harder to come across, bidding has been healthy for those that are found on the auction floor. Sydney had a positive week for the most part, with some of the finer categories down slightly, 17.5MPG was down 8ȼ. In Sydney, 19.5 MPG was best on ground this week up 53ȼ to finish the week at 1595ȼ/kg. Further South to Melbourne, prices were up at the finer end of the spectrum. 17MPG saw a 30ȼ increase to 2230 ȼ/kg.
The Western Market Indicator (WMI) had another modest increase of 7ȼ to 1479ȼ/kg. WA wool sellers haven’t been shy to withdraw lots prior to sale, with 9.3% this week withdrawn, perhaps contributing to the appreciation of pricing out west of late.
No change this week in crossbred markets, 28MPG tracked sideways to 335ȼ/kg in Melbourne.
Cardings were down this week, a 10ȼ decline to 821 ȼ in Sydney, an 8ȼ reduction ending at 826ȼ Melbourne, and 9ȼ down to 810ȼ in Fremantle.
34,720 bales were sold this week nationally, which is a new low mark for the calendar year. With the pass-in rate at 10.6%, the decline in sales volume reflects the level of pre-sale withdrawals as opposed to buyer disinterest. For the 2nd consecutive week sales volumes were below the season’s weekly average (37k bales).
This week on Mecardo, Andrew Woods provides us with an update on the German IFO indices and the implications of the recent positive uptick for Merino prices. The late rebound in 2022 Merino prices was matched by a small improvement in the German Manufacturing Index. A return to neutral economic sentiment is an improvement, but expectations are not yet bullish.
The week ahead….
Expectations volume-wise are much higher than the previous few weeks with 48643 bales scheduled for sale next week. Sydney, Melbourne, and Fremantle will have sales on Tuesday and Wednesday.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
Categories
Have any questions or comments?
Optimism a plenty
As reported last week, it felt like the wool market was stirring on the back of positive Chinese economic stimulus. This week it posted the
Supply and price for broad Merino
Low wool prices, along with dry seasonal conditions, lead to poor sentiment. Given the current low wool prices (and apparel fibre prices generally) the question
Wool market dragon is stirring
When the cat is away the mice will play. Good news for the Chinese property market before China’s public holiday break has boosted the confidence
Argentine Wool Clip
With full season data available for the Argentine wool clip, it is time to review the wool production of this member of the Southern Hemisphere
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.