Wool

Western sellers put their best foot forward and the buyers did not want to be found wanting as lower supply driven by pre-sale withdrawals saw prices rise out west this week. Across the Nullarbor, broader categories rallied this week in Melbourne to lend support to the Eastern Market Indicator (EMI) which rose ever so slightly, despite finer categories plunging in price.

The EMI steadied this week up 1ȼ to 1318 ȼ/kg, a halt in the downward momentum of the previous fortnight.   Whilst the Australian dollar has continued to appreciate (up to 0.674 USȼ), the impacts were not felt in the wool market, as the EMI saw a 14 ȼ increase when expressed in $US, finishing the week at 888 USȼ/kg. 

Eastern markets were a mixed bag this week, as buyers negotiated their way through an offering with high VM and low incidence of CIS accreditations. In Sydney, finer microns did not find favour with buyers, with 17.5 MPG fleece losing 30 ȼ to finish the week at 2075 ȼ/kg.  Similarly, Melbourne market 17MPG fell 103 ȼ, ending the week at 2215 ȼ/kg.  Sellers of broader microns did find support in the market in Melbourne, as 19MPG and higher wool saw a healthy bump in price that contributed to the steady overall position of the market. 19.5 MPG in Melbourne rose 47ȼ to end the week at 1594 ȼ/kg.  

Way out west indicators across all microns rallied with a smaller offering put forward again this week. The Western Market Indicator (WMI) closed the week at 1462ȼ/kg, an increase of 17ȼ. 19 MPG wool was up 25ȼ to 1651 ȼ/kg. Western sellers again were flighty when it came to clearing stock relative to the East coast, as they led the country in pass-in rate (9.7%) again this week.  Smaller offerings driven by pre-sale withdrawals motivated buyers as demonstrated by the appreciation in prices this week.

Crossbred markets were relatively steady this week. 32MPG fleece in Melbourne increased 3ȼ to 258 ȼ/kg.

Eastern market cardings were down 13 ȼ and 22 ȼ in Sydney (865¢) and Melbourne (888¢) respectively.  The rally was evident in cardings out west, up 19ȼ to finish the week at 872¢.

Pre-sale withdrawals contributed to market dynamics this week as 5k bales scheduled did not make the trip to market.  For the second week running bales offered were at the 40 000 mark, however, a lower pass-in rate of 8.1% resulted in the weekly clearance of 36 949 bales; hovering a fraction above the weekly average sales figure.

The week ahead….

With the Easter recess approaching the substantial volumes of offerings that have characterised the Q1 2023 wool market looks to continue with 49 501 bales scheduled for auction. How many of these bales end up at auction next week is hard to say, will there be more pre-sale withdrawals as has been the trend the previous fortnight?

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Data sources: AWEX, AWI, Mecardo

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