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.

Have any questions or comments?

We love to hear from you!
Print This Post

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: AWEX, AWI, Mecardo

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services

Have any questions or comments?

We love to hear from you!
Australian wool manufacturer
Sheep

Crossbred wool and acrylic

At the risk of flogging a subject to death Mecardo has another look at crossbred wool prices this week, in relation to acrylic staple fibre

Read More »
Wool

Slow start, then action!

AWI reported the first day of selling had buyers operating in an atmosphere “devoid of confidence”, which despite a weaker Au$ saw prices fall. However,

Read More »
Sheep in a yard
Wool

Vegetable matter discounts

Mecardo looked at vegetable matter (VM) discounts for broad merino in mid-August, when they had blown out to extreme levels. This article takes a look

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.