The Eastern Market Indicator (EMI) improved
significantly for the week, up 35ȼ to 1212ȼ/kg a 3% week-on-week change. The EMI
expressed in US$ also rose, lifting 34ȼ to 814 USȼ/kg.
The West was also along for the ride,
lifting prices across all categories as the Western Market Indicator (WMI) finished
2,9% higher week on week, to 698 ȼ/kg. 18MPG in the west improved by 48ȼ to
1645ȼ/kg and 21MPG increased 40ȼ to 1378ȼ/kg.
Fine wool demand in Sydney was particularly
strong as 17.5MPG improved 100ȼ to 1825ȼ/kg, 17MPG increased 145ȼ to 1970ȼ/kg
and the pass-in rate averaged just 1.8% for Merino fleece lots.
The Melbourne market also saw some strong
improvements at the finer end of the offering, with 16.5 MPG improving 121ȼ/kg to
2061ȼ/kg and 17MPG increasing 70ȼ to 1925ȼ/kg.
46317 bales were sold this week, the 2nd
highest for the calendar year and 17% higher than the weekly average of bales
sold (for the 2023/24 season) which is currently 39503.
Andrew Woods this week provided some
analysis on RWS premiums and volumes in merino wool sold at auction in
Australia in 2023 (read here).
There was always a question as to whether the supply chain would continue to
pay the large premiums seen in 2021 and 2022 for RWS-accredited wool. It
appears the answer has arrived, and it is a negative one. Whether this has
happened because supply has increased, demand is weak in Europe reflecting
economic conditions or the supply chain decided it did not want/need to pay
large premiums is unclear at this stage. The answer is likely to be a mix of
all these factors.
Wool markets gift to sellers
Next week
The wool supply chain will be taking a well-earned break from Sales. Auctions will resume in the new year on the 8th of January 2024.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, AWI,Mecardo
Categories
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