 Merino Fleece delivered mixed fortunes with the 16.5 and 17 MPG’s increasing by 34c and 25c respectively, conversely price pressure was felt on the 17.5µ-20µ MPG’s which fell between 9c and 32c.
The 21-22µ offering of Merino Fleece offered exclusively in Melbourne on Thursday attracted better competition and added 15c and 19c respectively. As we have seen over the past 2 months, the diminishing quality of the Northern offering (resulting from seasonal conditions) has seen a widening gap between the best prepared and specified lots (with low VM and CVH) and the lots containing colour, cotted wool, high VM, low strength and overlength or a combination of some or all of these qualifiers. The AWEX EMI closed on 1289c – down 11c at auction sales in Australia last week. Unfortunately, the changes in the offering forecast had already implanted a negative sentiment with the Chinese Topmakers and set the scene for a cautious market approach. Despite the downward pressure on the Eastern Market Indicator, clearance rates were a reasonably healthy 87.7% with the highest pass in rates continuing to be directed towards the Crossbred and Oddment sectors. Currency was slightly weaker this week with the AUD closing the sale week on .6USc which saw the EMI in USc fall 14c to 864c. Merino Skirtings opened the week generally unchanged with the exception of the lots containing heavy VM (>6%). As in the fleece, the best prepared and specified lots attracted bullish competition at pre-Easter levels whilst the poorer style and specified lots struggled to maintain. |
| Crossbred Combing wools opened generally cheaper earlier in the week, with a large offering in the Southern market. Division is widening between the best specified and prepared lots and the poorly prepared and specified lots.
Merino Cardings: The MC indicator continued its downward path as exporters report reduced demand for these types. Locks came under price pressure throughout the week whereas Stains and Crutchings were able to maintain their pre-Easter levels. Mike Avery from Southern Aurora Markets reports that firmer tendency continued into the conclusion of auctions as Melbourne sold in isolation on Thursday. The forward market was relatively quiet as the spot searched for a base. Buyers paid above cash to get cover but sellers generally remained patient as prices grinded towards historic support levels. The forward bidding on the 19.0 contract is currently 20 cents above spot at 1640, providing food for thought for growers looking for some insurance out as far as April 2025. Sentiment and the macro-economic outlook will have the principal impact. Globally, soft commodities had a mixed week with cotton down 3% on close of trade Thursday. We are unlikely to see a major change on the wool front with exporters looking to hedge at best around cash in the nearby and into spring but still providing modest long-term cover (2024/25) at a 1% premium. This week sales reduce substantially to 44,901 bales due to the Anzac Day Public Holiday which falls on Tuesday. Next week’s sales will be conducted on Wednesday and Thursday. -Marty Moses |