A goldilocks wool market: not too hot, not too cold


Back from the Easter recess, results were mixed between selling centres with the Merino segment fairly steady in Sydney, stronger in Melbourne and weaker in the West. A large offering was met with mixed interest influenced by a stronger Aussie dollar.

The Eastern Market Indicator held steady at 1,142¢/kg clean. The AUD has strengthened since the last week of sales, which appeared to impact demand. AWEX reported that on the third day of sales in Melbourne, an overnight fall in the AUD assisted in price improvement.

Melbourne opened to a softer market on Tuesday but found its strength on Wednesday and Thursday across 17.5 to 22MPG with many microns lifting around 20¢ this week.

In Sydney, stylish (MF4) lots with low CVH were keenly sought on Wednesday. 16.5MPG lost 33¢ and 17MPG was down 10¢ but most other Merino fleece MPG’s were steady or slightly stronger.

Fremantle’s Merino fleece sector lost ground on Tuesday, lots with poorer style, lower yields and higher VM levels were irregular. All microns experienced price declines, which saw the Westen Market Indicator drop 15¢ to 1269¢/kg.

Merino cardings saw variable results across each selling centre. Sydney gained 10¢ on the week, Melbourne picked up 2¢ while Merino cardings in Fremantle were hit with a 24¢ drop.

The crossbred segment has mixed results this week. 28MPG saw no change in price, but 26MPG lost 10¢ and 30MPG ended 8¢ lower.

50,148 bales were offered to the trade this week and with a pass-in rate of 7.4%;  46,457 were sold. This figure isn’t unusual for post-Easter recess, coming in line with the volume sold post-Easter last year.

The analysis done by Andrew Woods on Mecardo earlier this week (read here) sheds some light on the recent price moves in the wool market. Volumes have tightened up across all micron categories, but broader merino volumes are suffering the biggest falls. This is offering some price support and will continue to pressure merino micron price differentials to narrow. 

Next week

A total of 46,411 bales are rostered for sale in next week’s auction with all centres selling on Tuesday and Wednesday.

Have any questions or comments?

We love to hear from you!

Click on graph to expand

Click on graph to expand

Data sources: AWEX, Nutrien Ag Solutions, Mecardo

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services

Have any questions or comments?

We love to hear from you!

Want market insights delivered straight to your inbox?

Sign up to the mailing list to get regular updates to new analysis and market outlooks

Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
Listen to the podcast

Join the Mecardo team for the Commodity Conversations podcast, where we provide short weekly market recaps and longer conversations with guests to discuss the drivers and trends in livestock, grain and fibre markets.

Photo of a farmer surrounded by Merino sheep in dusty yards
Research: Analysis of the Australian sheep flock

In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making. 

Image of harvested grain pouring into a chaser bin

We don’t just bring you the most up to date market insights. Find out more about Mecardo’s services including risk management advisory, modelling, benchmarking, research & consultancy.