There was a sigh of relief when the wool market this week rebounded to pick up most of last week’s price correction. With increased volume this week and projected for the coming weeks many were nervous that the brief September rally was a mirage.
While this still could be the case, there is an equal chance that the low point is now behind us.
The Eastern Market Indicator (EMI) improved 26¢ to close this week at 1022¢, back above the psychological 1,000-cent support level. This puts the market back on track with the rally, from the first week of September low the EMI has gained 19.1% or 164 cents. The AUD was marginally softer at US$0.712 which saw the EMI in USD terms rising 22¢ for the week, closing at 727¢. Fremantle followed suit with the Western Market Indicator gaining 30¢ and now sitting at 1054¢.
A reduced offering of 29,668 bales came forward. With a much-reduced pass-in rate of 5.1% nationally, 28,154 bales were sold, 2,659 bales more than last week.
The rises were general in nature and spread across the micron categories, with the biggest movement in the 18.5 to 21 MPG’s of 3.2% to 4.0%. It was noted in the AWEX report while there was keen buyer interest in all types & descriptions, again the buyers were seeking out “best” style wool for favourable attention.
With the EMI rising for four of the last five selling series, and an increased clearance this week with the pass-in rate half of the early season rate, the market is looking much healthier.
The crossbred section had a good sale week, with all categories showing improvement. Of note was the 30 MPG in Melbourne where a 30 cent or 7% increase was noted, however finer types were also dearer.
Cardings were quoted as dearer in Sydney and Melbourne with Fremantle picking up last week’s fall to see the W.A. Carding indicator 21 cents dearer at 760 cents.
This week on Mecardo, Andrew Woods looked at the seasonal patterns for staple strength (SS) to identify if any specific time of the year was more or less favourable to sell low staple strength wool.
Staple strength is higher in the middle of the calendar year and lower towards the end/beginning of calendar years. Variation in staple strength can be much greater between years than the normal variation within years, concluding that there is no consistent relationship between SS discounts for low SS.
The week ahead….
The next weeks offering of 30,468 bales will head to the market with some confidence after the recent strong showing.
The Australian wool market stabilised this week, with the Eastern Market Indicator (EMI) down just 1 cent to 1,189 c/kg, despite currency swings impacting USD
The Australian wool market softened this week as a firmer Australian dollar and a sharp decline in wool quality weighed on buyer sentiment. The Eastern
The latest AWTA core test volume data shows a continued fall in Australian wool production, which is not surprising given the tough seasonal conditions across
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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.
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Wool shakes off last weeks concerns
The Eastern Market Indicator (EMI) improved 26¢ to close this week at 1022¢, back above the psychological 1,000-cent support level. This puts the market back on track with the rally, from the first week of September low the EMI has gained 19.1% or 164 cents. The AUD was marginally softer at US$0.712 which saw the EMI in USD terms rising 22¢ for the week, closing at 727¢. Fremantle followed suit with the Western Market Indicator gaining 30¢ and now sitting at 1054¢.
A reduced offering of 29,668 bales came forward. With a much-reduced pass-in rate of 5.1% nationally, 28,154 bales were sold, 2,659 bales more than last week.
The rises were general in nature and spread across the micron categories, with the biggest movement in the 18.5 to 21 MPG’s of 3.2% to 4.0%. It was noted in the AWEX report while there was keen buyer interest in all types & descriptions, again the buyers were seeking out “best” style wool for favourable attention.
With the EMI rising for four of the last five selling series, and an increased clearance this week with the pass-in rate half of the early season rate, the market is looking much healthier.
The crossbred section had a good sale week, with all categories showing improvement. Of note was the 30 MPG in Melbourne where a 30 cent or 7% increase was noted, however finer types were also dearer.
Cardings were quoted as dearer in Sydney and Melbourne with Fremantle picking up last week’s fall to see the W.A. Carding indicator 21 cents dearer at 760 cents.
This week on Mecardo, Andrew Woods looked at the seasonal patterns for staple strength (SS) to identify if any specific time of the year was more or less favourable to sell low staple strength wool.
Staple strength is higher in the middle of the calendar year and lower towards the end/beginning of calendar years. Variation in staple strength can be much greater between years than the normal variation within years, concluding that there is no consistent relationship between SS discounts for low SS.
The week ahead….
The next weeks offering of 30,468 bales will head to the market with some confidence after the recent strong showing.
Have any questions or comments?
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Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
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Have any questions or comments?
Volume light, demand tight, and a flat EMI
The Australian wool market stabilised this week, with the Eastern Market Indicator (EMI) down just 1 cent to 1,189 c/kg, despite currency swings impacting USD
Volumes ain’t volumes
Weekly auction volumes of wool offered are often bandied around as a measure of whether supply is set to outstrip or fall short of demand,
Wool dips as quality slips
The Australian wool market softened this week as a firmer Australian dollar and a sharp decline in wool quality weighed on buyer sentiment. The Eastern
What are wool prices doing in response to lower supply?
The latest AWTA core test volume data shows a continued fall in Australian wool production, which is not surprising given the tough seasonal conditions across
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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.