Wool shed

This week only Sydney & Melbourne offered, with AWEX reporting that the EMI rose for the fourth consecutive week, with “every sector posting rises.” The MPG indicators 18 MPG & finer All sit above 2000 cents, the last time this occurred was in mid-August 2019.

The Eastern Market Indicator (EMI) added 50¢ this week to finish at 1,393¢. In US dollar terms with the Aussie dollar holding steady at US$0.774, the EMI in US¢ gained a further 38¢ to 1,078¢.

Again, the fine end of the clip was the stand-out, with the 16.5 to 18 MPG gaining 73 to 115 cents, while the 18 to 22 MPG lifted 18 to 75 cents.

It is difficult not to continue to focus on the fine wool price relative to the medium Merino types, it seems a new highlight appears each week. As an example, the average price premium of fine & superfine wool compared to the average MPG of the wool clip has now surpassed the previous 1988 peak.

The Crossbreds section also improved, gaining between 7 & 26 cents. It was significant that following 6 weeks of falling prices, the 32 MPG’s posted the largest rise in percentage terms, lifting 25 cents or 11.7%.

Cardings followed the market up with prices improving 29¢ in Sydney & 28¢ in Melbourne.

With Fremantle not participating, almost 4,000 bales fewer came forward with 34,811 bales offered this week after 5.0% of the original offering was withdrawn. With the lowest pass-in rate for 2021 of 4.1%, 34,811 bales were cleared to the trade, just 900 bales fewer than last week. The average weekly clearance for the season to date sits at 34,112 bales, almost 7,000 bales per week more than 2019-20 season.

This week on Mecardo, Andrew Woods looked at crossbred wool prices to explore the factors contributing to the wide range of prices paid for a given combination or category, staple length and fibre diameter. Breed and preparation appear to be heavily influencing values leading to these wide ranges in price.

The week ahead….

Next week an increased offering of 45,341 bales are rostered with Fremantle returning to the roster. All centres are selling on Wednesday & Thursday. Its difficult to see any pull-back in prices based on the strengthening sales across this week.

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!
Wool

Sellers meet the market

Sellers “took the money” this week, meeting the market despite a choppy result. Good & good-average styles as times were heavily discounted as AWEX reported

Read More »

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

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.