|Crossbreds continued to inch up from its historic low-price base, with all the XB MPG’s adding 5-19c across the eastern market’s centres.
The 2 biggest buyers of the Aussies crossbred offering remain the Chinese based exporters, Kathaytex Trading and Pelican Wool. Support was also present from the two largest Australian based trading exporters.
Merino Cardings had another interesting week. Sydney and Melbourne remained firm on last week’s levels, whilst Fremantle lost 25c for the week. Lots destined for carbonising (locks, crutchings and stains) containing hard heads (bathurst burr & noogoora burr) attracted limited competition and hence attracting low bids and resulted in a high pass in rate.
Week S13: 28/09/2023 The AWEX EMI closed on 1135c down 9c at auction sales in Australia. With Nanjing conference in the rearview mirror, there does not seem to be any reports indicating any real change in business conditions in our major markets.
This week the sale roster was accommodating the “land of the long weekend” therefore, the national roster was split to accommodate the different states. Melbourne offered in isolation on Tuesday with Sydney and Fremantle joining the selling roster with Melbourne on Wednesday.
Then only Fremantle and Sydney sold on Thursday. 38,709 bales went on offer and despite the slightly weaker market tone in the merino fleece, 90% cleared to the trade. The currency exchange saw the AUD fall below .64 c which resulted in the USD EMI falling by 15 US cents.
Merino Fleece generally came under negative price pressure on Tuesday in Melbourne, so it was no surprise that Wednesday saw the other centres fall into line, adjusting to the price basis downward to the business conditions.
Sellers were generally accepting with pass in rates in this category remaining relatively moderate. Best style and specified superfine types were chased aggressively by the Italian spinners, otherwise the trading exporters and indent export operators were the dominant purchasers.
Merino Skirtings remained relatively strong early in the selling week. Despite the pressure in the fleece most skirting types were quoted firm or tending slightly dearer on Tuesday and Wednesday. Sydney saw some price resistance as Thursday’s sale progressed, whilst Fremantle saw their skirts continue to gain price momentum.
It is not unusual to see the market wane at this time of the year, however the price base for wool remains depressed, and on top of the other on-farm income drivers (Livestock sales) also being at a new low price point, as the drying conditions have increased the saleyard offerings around the country. However, the elephant in the room remains the enormous pressure on the wool check to pay the escalating bills. Seasonally, Northern, Central and Western regions of NSW have slipped into drought conditions but many regions in the South and East could still benefit from a decent rain in the next week or two.
It is incredible how resilient our clients have been over my time in Agriculture, and I am sure with a dash of Aussie farmer know how, we will all emerge from this significantly challenging period. Just remember that approaching our 104th year in business, Moses & Son services extend beyond wool broking and we are available to chat at any time.
Next week’s selling changes again due to a Public Holiday (in Sydney), shifting selling to Wednesday and Thursday. 42,115 bales are currently expected to be offered nationally.
~Marty Moses, Moses and Son