The AWEX EMI pushed 40c higher to close the week on 1983c at auction sales in Australia this week. The new EMI record has pushed all Merino MPG’s into record territory and has the 28 MPG and the MCI at their 99th percentile.
The EMI rose a similar amount in USD (+40c) as buyers had to compete for the meagre 30,053 bales on offer. The supply of wool coming onto the market now relies largely on freshly shorn deliveries which are largely low yielding, and lesser style. There appears to be little or no “held” wool on farm or in brokers’ stores to draw from and over the next three weeks, offerings range between 25,000 and 33,000 bales with an emphasis on further declines as the season draws to a close in 7 weeks for the mid-year recess.
Merino Fleece of all Microns were extremely well supported – adding 40-80c for the week, despite the greater percentage of lesser style wools.
Skirtings followed the lead of the fleece and posted rises from 30-60c.
Crossbreds remain irregular with the 26MPG posting 40c rises, whilst the remaining coarser MPG’s struggled to maintain their levels of the past few weeks.
Merino Cardings posted rises of 20-40c across the three centres averaging rises of 30c.
Looking closer at the AWEX MPG’s, we see the micron basis over the past few weeks close up with the 19.5 and 22μ price difference now down to 50c. The EMI is 488c over the previous 12 months (+32%). Looking further back to the previous 24 months, the EMI has risen by 691c (+53%).
Next week 31,336 bales have been rostered for sale and I would foresee more of the same aggressive emotion displayed in the rooms and possibly the EMI breaking through the 2000c ($20) barrier.
Despite the seasonal challenges, it continues to be a great time to be in sheep and wool. ~ Marty Moses