Last week the reduced offering was noted as a contributor to the turnaround in the wool market, however this week a 5.3% EMI rise was observed despite an increased offering. Fremantle joined the better demand and finished strongly; a good pointer to next week’s prospects.

The Eastern Market Indicator (EMI) rose another 47¢ to close this week at 937¢, taking the 2-week improvement to 79 cents or a healthy 9.2% lift on the season low to date of two weeks ago. The AUD was stronger by almost US$0.01 to US$0.732 which saw the EMI in USD terms rise 43¢ higher, closing at 686¢. Fremantle found solid demand this week also with the Western Market Indicator rising 62¢ and now sitting at 984¢.

An increased offering of 29,408 bales came forward. With a pass-in rate of 5.9% nationally, 27,661 bales were sold, 9,118 bales more than last week.

This week on Mecardo, Andrew Woods referenced the Combing/Carding basis looking for indications for the wool market going forward. While the relationship has worked well for four decades, this is the first pandemic driven down cycle, so we need to be careful in extrapolating from past market patterns. Given that caveat the carding combing basis is close to a level which would indicator combing merino prices are at a cyclical low.

The improvement was felt by all types and across the three selling centres, with AWEX reporting that “the larger offering attracted widespread competition from the opening hammer”.

The individual Merino price guides rose by 30 to 117 cents, and in a strong pointer to renewed interest Fremantle selling later than the East Coast closed higher for the 19 to 21 MPG’s than Melbourne & Sydney.

The crossbred section recorded strong rises also, increases up to 55 cents with 28 & finer the most effected.

Cardings in all centres were also on the up with an average of 30 cents lift noted in line with the general market.

The week ahead….

Next week the offering reduces, with 25,030 bales listed, with Melbourne & Sydney selling over two days; Fremantle only offering on Wednesday.

After this week’s market performance, the wool market dares to hope that we may see a third consecutive week of rising prices.

Have any questions or comments?

We love to hear from you!

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: AWEX, 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 sheep moving through yards
Wool

Upward trend continues

The second week of sales for 2021 was described as exhibiting “keen competition” on the large offering. The positive market continued up to the last

Read More »
Wool

VM levels changing

After three tough years in eastern Australia, good rainfall in 2020 has been a blessed relief for most regions. With a change in seasonal conditions

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.