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Thursday, January 08, 2015

Wool markets in 2014 – overall downturn and a few winners

By Augusto Semmelroth  |  Source: MLA's NLRS

Despite the sharp depreciation of the A$ since September, the wool market still finished 2014 in the red. Bucking the overall downtrend, crossbred wools continued to move higher in the last few months of 2014 to end the year around 10% higher than where they started. Fine and medium wools, on the other hand, finished the year up to 10% lower on the east coast and 7% in the west.

Key points:

  • Fine and medium wools finished 2014 around 90-140¢, or 7-10%, lower despite the recent fall in the A$.
  • The Eastern Market Indicator (EMI) downturn in 2014 was capped at 6.4%, partly offset by firmer crossbred and merino carding prices.
  • Yet, in US$ terms the EMI still plunged 12.2% between January and December.
  • In the west, the Western Market Indicator (WMI) finished the year 4.7% lower, while most wool types within the 18.5-22 micron range fell 5.5-7% during the year.
  • While fine and fine wools lost considerable ground in 2014, coarse wools types manage to buck the trend to finish the year on a very positive note supported by robust export demand.
  • In both Melbourne and Sydney, the 28 and 30MPG ended the year around 70¢, or 10-11%, higher.
  • Merino cardings were mixed, with the southern and western indicator up 5-10¢, or 0.5-1%, between January and December, while down 22¢, or 2.7%, in Sydney.

Mecardo information is provided to assist in your marketing decisions. It contains a range of data and views on the current market. It is not intended to constitute advice for a specific purpose. Before taking any action in relation to information contained within this report, you should seek advice from a qualified professional. The information is obtained from a variety of sources and neither Mecardo nor Ag Concepts Advisory will be held liable for any loss or damage whatsoever that may arise from the use of information or for any error or mis-statement contained in this report. 


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