Last week's positive move continued with the market posting gains across all MPG’s, with the exception of 16.5 MPG in Melbourne which eased slightly. This came despite Fremantle re-joining the fold and bale offering increasing by around 5,000.
The Eastern Market
Indicator (EMI) lifted 28¢ to 1170¢, while 10 US¢ was added to take the indicator
expressed in US$ to 778¢. The West also followed suit in a positive market,
gaining 30¢ to 1299¢.
AWEX report
sentiment was positive from the opening, lifting the EMI 12¢ on the first day,
and while more sedated on the final day, gains continued.
Sellers responded
positively to the stronger market with the pass-in rate for the week falling to
3.5% which saw 30,875 bales sold. This was 5,000 bales up on last week, however
still below the average of 38,278 for the current season.
Stylish low VM types
are becoming more difficult to find and this was reflected in the auction
reports, with buyers favouring these lots. The 16.5 MPG category was the only index
to lose ground, reflecting less demand for the lower yield and higher VM wools
in this section.
Crossbred types were
also in an uplift mood, with a stand-out effort from the 28 MPG lifting 18¢.
Cardings posted
gains in all centres, Melbourne +17¢, Sydney +5¢ and Fremantle up 2¢.
Volumes typically
decline into the winter, however January to May this year bales offered for
auction were almost 11% down on 2023, causing buyers difficulty in filling
orders especially those requiring better style wool.
With Fremantle again
pausing sales next week due to low receivals, next week’s smaller offering of
28,000 bales should see this week’s momentum at least hold.
Next week
A smaller offering is rostered, with Fremantle again out of the action and Melbourne & Sydney selling on Tuesday & Wednesday only.
This week’s market continued to show stronger prices despite the increased bales on offer as sellers responded to the rising market. The Eastern Market Indicator
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Wool warms to Winter
The Eastern Market Indicator (EMI) lifted 28¢ to 1170¢, while 10 US¢ was added to take the indicator expressed in US$ to 778¢. The West also followed suit in a positive market, gaining 30¢ to 1299¢.
AWEX report sentiment was positive from the opening, lifting the EMI 12¢ on the first day, and while more sedated on the final day, gains continued.
Sellers responded positively to the stronger market with the pass-in rate for the week falling to 3.5% which saw 30,875 bales sold. This was 5,000 bales up on last week, however still below the average of 38,278 for the current season.
Stylish low VM types are becoming more difficult to find and this was reflected in the auction reports, with buyers favouring these lots. The 16.5 MPG category was the only index to lose ground, reflecting less demand for the lower yield and higher VM wools in this section.
Crossbred types were also in an uplift mood, with a stand-out effort from the 28 MPG lifting 18¢.
Cardings posted gains in all centres, Melbourne +17¢, Sydney +5¢ and Fremantle up 2¢.
Volumes typically decline into the winter, however January to May this year bales offered for auction were almost 11% down on 2023, causing buyers difficulty in filling orders especially those requiring better style wool.
With Fremantle again pausing sales next week due to low receivals, next week’s smaller offering of 28,000 bales should see this week’s momentum at least hold.
Next week
A smaller offering is rostered, with Fremantle again out of the action and Melbourne & Sydney selling on Tuesday & Wednesday only.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: Nutrien Ag Solutions, AWEX, Mecardo
Categories
Have any questions or comments?
Merino wool price cycles
Merino (and crossbred) wool prices appear to be working through the bottom of a price cycle, driven by weak economic conditions in Europe and China
Supply pressure spooks sellers
It can be difficult to see the forest for the trees at times, particularly when the details have presented the best opportunities for wool sellers
The market continues positive start to 2025
This week’s market continued to show stronger prices despite the increased bales on offer as sellers responded to the rising market. The Eastern Market Indicator
AWTA volumes – east looks normal and the west continues to downsize
It is not hard to find doom and gloom commentary about the wool industry, which is fairly typical of the wool and sheep industries swinging
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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.
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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.