It was noticeable that Chinese demand remained subdued this week and this was reflected in a generally sluggish wool market.
The reported concerns related to energy and power supply in China has dampened demand and caused processors to take a cautious approach to greasy wool purchases.
The Eastern Market Indicator (EMI) fell 16ȼ or 1.2% for the week to close at 1,323ȼ. The Australian dollar was stronger in all currencies this week with the US/Au rate settling at US$0.737, which resulted in the EMI, in US dollar terms, posting a 4ȼ fall to settle at 971ȼ.
Fremantle selling last was reported as “steadying” late in the last day of sales, however the Western Market Indicator (WMI) gave up 21ȼ cents to 1349ȼ. Fremantle sold 5,672 of the 7,072 bales offered with 19.8% of offered bales passed in.
The AWEX reported the strong finish in Fremantle sales on Thursday, provides some positive sentiment for next week’s sales.
The national offering was larger this week with 40,799 bales offered, almost 4,000 more than last week. The national pass-in rate of 13.9% was slightly higher than last week, resulting in 35,127 bales selling, 2600 more than last week. The average clearance of bales per week for the season to date is 32,369, still below last season’s average clearance of 34,186 bales.
The crossbred indicators were all cheaper, with the 26 MPG again the weakest performer losing 26ȼ for the week. The exception was the 32 MPG which lifted 5ȼ, however 28 & 30 MPG were down 15ȼ &5ȼ respectively.
Cardings were again cheaper in all centres, Fremantle was down 30ȼ, while in Melbourne the indicator fell 3ȼ and 18ȼ in Sydney.
This week on Mecardo (view article here), Andrew Woods reviews the premiums & discounts applied to wool as a result of staple strength. Staple strength is nowhere near the terror of the market it has been in the past although a staple strength around 38 N/ktx tends to be the threshold for access to RWS premiums and some specialist Italian contracts in the current market, but achieving these prices depends on more than staple strength.
The week ahead….
Next week Fremantle, Melbourne & Sydney are all selling on Tuesday & Wednesday, with a similar offering of 42,755 bales currently rostered.
The latest release of Meat and Livestock Australia’s Industry Projections has a pertinent section on the structural shift in the national flock. Survey results continue
South Africa remains the major supplier of RWS-accredited merino wool for 19 micron and broader merino wool. This article looks at the South African merino
Varied seasonal conditions in different regions during the past year (ranging from good to awful), low prices and the live sheep export issue in Western
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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.
Volatile ride continues
The Eastern Market Indicator (EMI) fell 16ȼ or 1.2% for the week to close at 1,323ȼ. The Australian dollar was stronger in all currencies this week with the US/Au rate settling at US$0.737, which resulted in the EMI, in US dollar terms, posting a 4ȼ fall to settle at 971ȼ.
Fremantle selling last was reported as “steadying” late in the last day of sales, however the Western Market Indicator (WMI) gave up 21ȼ cents to 1349ȼ. Fremantle sold 5,672 of the 7,072 bales offered with 19.8% of offered bales passed in.
The AWEX reported the strong finish in Fremantle sales on Thursday, provides some positive sentiment for next week’s sales.
The national offering was larger this week with 40,799 bales offered, almost 4,000 more than last week. The national pass-in rate of 13.9% was slightly higher than last week, resulting in 35,127 bales selling, 2600 more than last week. The average clearance of bales per week for the season to date is 32,369, still below last season’s average clearance of 34,186 bales.
The crossbred indicators were all cheaper, with the 26 MPG again the weakest performer losing 26ȼ for the week. The exception was the 32 MPG which lifted 5ȼ, however 28 & 30 MPG were down 15ȼ &5ȼ respectively.
Cardings were again cheaper in all centres, Fremantle was down 30ȼ, while in Melbourne the indicator fell 3ȼ and 18ȼ in Sydney.
This week on Mecardo (view article here), Andrew Woods reviews the premiums & discounts applied to wool as a result of staple strength. Staple strength is nowhere near the terror of the market it has been in the past although a staple strength around 38 N/ktx tends to be the threshold for access to RWS premiums and some specialist Italian contracts in the current market, but achieving these prices depends on more than staple strength.
The week ahead….
Next week Fremantle, Melbourne & Sydney are all selling on Tuesday & Wednesday, with a similar offering of 42,755 bales currently rostered.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, AWI, Mecardo
Categories
Have any questions or comments?
Merino component of flock under pressure
The latest release of Meat and Livestock Australia’s Industry Projections has a pertinent section on the structural shift in the national flock. Survey results continue
Battle of the Merino: South Africa vs Australia
South Africa remains the major supplier of RWS-accredited merino wool for 19 micron and broader merino wool. This article looks at the South African merino
Merino market lifts
The Merino section of the market took the credit for the modest improvement seen at auctions this week. The last two weeks of selling have
Drop in WA wool substantial but not unprecedented
Varied seasonal conditions in different regions during the past year (ranging from good to awful), low prices and the live sheep export issue in Western
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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.
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.