Larger offering places pressure on Merino fleece to lose 10-30c/kg

Published October 20, 2024
Merino Fleece was largely unchanged in respect there were more than 10,000 bales offered more than the previous week with the larger offering placing pressure on the Super Fine MPG’s which lost between 10-30c.

Conversely The 18.5µ to 19.5µ MPG’s closed relatively firm or in some cases slightly dearer and the 20-22 MPG’s were all 2-5c cheaper.

This meant that orders were filled with ease well within the specification parameters thanks to the larger offerings. Competition was dominated by the Large Australian Trading houses, with great support from the Chinese Indents and the Large Chinese Top Makers.
Merino Skirtings attracted keen competition and were seemingly oblivious to the see sawing movements of the Fleece sector. The best specified and prepared FNF skirtings continued to attract premiums which were at times approaching the price levels of the average quality fleece.

Crossbreds opened relatively firm compared to last week’s levels. The 26 and finer adjusted down in value slightly on Tuesday however the 27 and coarser MPGs were all able to add a few cents to last week’s levels posting price increases from 2-5c.

Merino Cardings also range traded on or close to last week’s price levels. Sydney closed firm Whilst Melbourne fell 1c and the MC in Fremantle rose by 9c.

The AWEX EMI closed on 1138c down 1c at auction sales in Australia this week. From the 41,065 bales offered 91.7% of the offering was cleared to the trade.

The Australian dollar value remained relatively steady around $0.67c which meant the EMI closed down 4 USc for the week and now sits on 762c. After some solid rises in the previous two weeks the merino fleece closed with irregular results.

Whilst everyone looked to the Chinese Government to release an economic package that supported the actions of the Peoples Bank of China’s stimulus. The largest 5 buyers purchased 54% of the national offering.
This week’s wool sales commence Tuesday 22nd October, offering 36,553 bales in Sydney, Melbourne and Fremantle. The early market intelligence is for a relatively stable market at, or possibly a slightly cheaper than the current price levels.

~ Marty Moses.