The softer wool market trend continued which resulted in one of the lowest weekly clearance rates for some time.
The Sydney designated Super-fine sale produced solid support for wool exhibiting good style and measurements, however, the recent trend of lesser wools struggling to find demand continued.
The Eastern Market Indicator (EMI) fell again, down 20ȼ to 1241ȼ/kg, however, a stronger Aussie dollar (+1.30ȼ), caused the EMI when expressed in US$ to increase by 3ȼ to 806ȼ/kg (US).
AWEX reported that although the market suffered losses for a third consecutive week, later sales showed some promise of modest gains. Most affected were the finer types, dragging the EMI to 78 cents (-5.9%) below the same time last year.
The Western market indicator again fell in line with the east coast sales, giving up 13ȼ to finish the week at 1381ȼ/kg.
In the Crossbreds section, 26 MPG fell sharply losing 33ȼ, while the 28 & 30 MPG categories were quoted as largely unchanged.
Cardings were generally softer, holding steady in Sydney, down 8ȼ in Melbourne and back 16ȼ in Fremantle.
Just 31,095 bales eventually found their way to the market, after 9.6% of the original rostered offering was withdrawn prior to sale. With a further 14.1% passed in, 26,696 bales were cleared to the trade. This was the second-lowest weekly sales for this season, and only the fourth time since July that less than 30,000 bales have been sold in the week. This is almost 7,000 below the season’s weekly average clearance of 33,748 bales.
This week on Mecardo, Andrew Woods looked at Crossbred wool prices. This fresh examination of the data confirms the view that crossbred prices are in the doldrums, at depressed levels. For anyone thinking the low percentile rankings is an indicator of higher prices to come, keep in mind that percentiles have no forecasting ability. It would be very good if they did. So, yes, crossbred prices will improve at some stage, but we do not know when.
The week ahead….
Next week sales have rostered a larger offering of 36,941 bales for sale across the three selling centres, all selling on Tuesday & Wednesday.
The mention of an El Nino has the scribes seeking forecasts and projections for agricultural commodities through production to price. This article takes a look
The main southern hemisphere wool exporters (from west to east; South Africa, Australia, New Zealand, Argentina and Uruguay) are by default the major suppliers of
The higher Australian dollar has prompted questions about the likely impact on local extensive agricultural commodity prices. Mecardo has covered this topic before. The relationship
The Australian wool market extended its winning streak this week, with the Eastern Market Indicator climbing 16¢ to finish at 1,693¢/kg ahead of next week’s
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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.
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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.
Wool market softer with stronger Au$
The Eastern Market Indicator (EMI) fell again, down 20ȼ to 1241ȼ/kg, however, a stronger Aussie dollar (+1.30ȼ), caused the EMI when expressed in US$ to increase by 3ȼ to 806ȼ/kg (US).
AWEX reported that although the market suffered losses for a third consecutive week, later sales showed some promise of modest gains. Most affected were the finer types, dragging the EMI to 78 cents (-5.9%) below the same time last year.
The Western market indicator again fell in line with the east coast sales, giving up 13ȼ to finish the week at 1381ȼ/kg.
In the Crossbreds section, 26 MPG fell sharply losing 33ȼ, while the 28 & 30 MPG categories were quoted as largely unchanged.
Cardings were generally softer, holding steady in Sydney, down 8ȼ in Melbourne and back 16ȼ in Fremantle.
Just 31,095 bales eventually found their way to the market, after 9.6% of the original rostered offering was withdrawn prior to sale. With a further 14.1% passed in, 26,696 bales were cleared to the trade. This was the second-lowest weekly sales for this season, and only the fourth time since July that less than 30,000 bales have been sold in the week. This is almost 7,000 below the season’s weekly average clearance of 33,748 bales.
This week on Mecardo, Andrew Woods looked at Crossbred wool prices. This fresh examination of the data confirms the view that crossbred prices are in the doldrums, at depressed levels. For anyone thinking the low percentile rankings is an indicator of higher prices to come, keep in mind that percentiles have no forecasting ability. It would be very good if they did. So, yes, crossbred prices will improve at some stage, but we do not know when.
The week ahead….
Next week sales have rostered a larger offering of 36,941 bales for sale across the three selling centres, all selling on Tuesday & Wednesday.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
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Have any questions or comments?
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Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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.