Volumes ain’t volumes
Weekly auction volumes of wool offered are often bandied around as a measure of whether supply is set to outstrip or fall short of demand, with the implication that prices will fall or rise as a consequence. This article takes a brief look at weekly sales volumes from a couple of perspectives. AWEX (see more […]
What are wool prices doing in response to lower supply?
The latest AWTA core test volume data shows a continued fall in Australian wool production, which is not surprising given the tough seasonal conditions across many regions. This article takes a look at the latest numbers. AWTA core test volumes provide the best view on Australian wool production, as volume and quality (in terms of […]
Wine, wool, and cashmere prices
In 2020, the economic backdrop to the wool market appeared likely to be one of recovery after a standard downturn in greasy wool prices during 2019, only for this scenario to be upset by the appearance of the COVID pandemic. In 2025, it appeared economic growth, with the USA leading the way, might start to […]
Deciles look backwards not forwards
Deciles (percentiles) analysis of price data is useful as a way to identify the middle or median price and provide some estimates of the probability of high and low prices occurring, using the historical data. The leap of faith is that the selected historical data is a guide to the future. This article takes a […]
Queensland sheep and wool numbers
Given the massive flooding in Queensland, the natural question is what impact will this have on livestock supply, and consequently prices? This article takes a look at sheep numbers and wool production in Queensland. In terms of sheep, it is some decades since Queensland had tens of millions of sheep. In mid-January (read article here […]
Forward prices in the merino wool market
A reader has requested an article on forward prices in wool, a topic which is something of a shibboleth in the wool industry and always worthy of comment. A liquid forward market would be nice to have in the wool industry; we just have to work out how to make one work. There is a […]
What’s driving the merino wool market
Rises in wool prices since last spring have been welcome, if somewhat variable. This article takes a look at what factors are behind these changes. Wool prices tend to trend in line with economic activity in the major world economies, rising when economic growth is improving and declining when economic growth weakens (see article here). […]
RWS Premiums on the Rise
Premiums for RWS-accredited wool have been increasing this season, which is a welcome change after a lacklustre run through 2023 and 2024. This article takes a look at where these premiums are up to. RWS premiums exploded onto the Australian wool market in the spring of 2021, not long after Cape Wools began publishing RWS […]
Beer, shearing and wool prices in 2025
It has been three years since we looked at shearing costs, beer and wool prices. The lift in shearing costs caused by the pandemic is now being felt in farmer production reactions to the combination of higher labour costs and cyclical low wool prices. The January 2022 article (see article here) noted a lack of […]
Economic backdrop to the wool market
As wool is an industrial commodity, its general price level is very sensitive to the economic conditions of the major economies of the world. This article takes a look at this aspect of the wool market. Mecardo last looked at the economic backdrop to the wool market in August (see article here), concluding that wool […]
RWS premiums persisting
Amongst some of the pessimism and frustration with the wool market currently , there are some bright lights, such as prices at the very fine end of the merino market and premiums for quality schemes, which this article takes a look at. Mecardo last looked at premiums for wool which was non-mulesed and accredited to […]
Merino wool price cycles
Merino (and crossbred) wool prices appear to be working through the bottom of a price cycle, driven by weak economic conditions in Europe and China in particular. Some multiyear forward prices are being offered to wool growers, so it seems a good time to look at the potential for higher prices in the next two […]
