Mecardo Wool ends on a confident note

While a comment that a market ended confidently for the week, without any real upward movement, might seem strange, the wool market's recent strength alongside global uncertainty makes a steady result all the more significant. The three centres selling had mixed results, with Melbourne ending positive, while Sydney eased.

The Eastern Market Indicator lifted 4¢ for the week, to close at 1310¢. This was a steady result, however, the various centres performed differently. Sydney posted a softer overall result while Melbourne, selling on the final day, ended stronger.

The AUD was weaker over the week losing 1.8 cents to close at US$0.78 which saw the EMI in US$ terms finish 20 cents weaker to close at 1020¢.

Fremantle followed the east coast trend of holding firm on last week leading the WMI to report a 1 cent decline for the week. The West also posted an easing in finer than 19.5 MPG, while stronger prices in the medium types supported the WMI.

AWEX reported that Crossbred types were stronger, with Melbourne 28 MPG up 17 cents, while the 30 MPG improved 32 cents in Melbourne.

Continuing the theme of solid performance, Cardings were stronger slightly in all centres, they were 4 cents better in Fremantle, while Sydney was up 10 and Melbourne up 17 cents.

Again, we saw a solid clearance of bales to the trade this week. AWEX reported that 46,544 bales were offered this week, with 5.1% withdrawn and 9.3% passed-in, resulting in 42,199 bales sold. This is again well above the average clearance season to date of 31,613 bales, demonstrating strong demand, which doesn’t look like faltering any time soon.

This week on Mecardo, Andrew Woods took a look at the price ratios of Cashmere with the 15 & 16 MPG wool types. While they are still below the upper limits of the past two decades, carding prices for these two micron categories are pushing up towards their peak levels reached in 2018. This implies the fine end of the merino market is getting close to what has been “full value” in recent decades. If the cashmere price continues to rise then there is scope for these categories to follow it higher.

The week ahead….

Another solid offering of 49,883 bales is listed for next week, with all centres selling over two days on Wednesday & Thursday. There is little to suggest that the market will not maintain current levels.