The Sydney pass in rate for the week averaged 2.1% in an indication that buyer demand is strong at this level of supply and sellers are happy to part ways at the current market pricing.
With the southern market enjoying the public holiday break,demand was strong in Sydney on Monday, with the broader categories achieving 20ȼ
plus gains for the day. Tuesday saw a
softer market, chipping away at the gains from the previous days. Even still,
Sydney ended the week in a stronger market than it began the week; 18.5mpg
improved 13 ȼ to 1509 ȼ/kg and 20mpg rose 6 ȼ to 1365ȼ.
The Melbourne market did not improve this week which has
contributed to the overall decline in the Eastern Market Indicator, which lost
5ȼ to 1167ȼ/kg. Similarly, the Western
Market Indicator finished 10ȼ lower to 1298ȼ/kg.
Per AWEX market commentary “Over the seventy selling days
that have since transpired [from the start of the selling season}, the EMI has
risen on twenty-nine occasions, fallen on thirty-five and been unchanged on the
other six”. We know that at specific micron levels that the premiums of finer wool have declined but overall market
sentiment is the very definition of drifting along. Considering the increase in
weekly sales volumes (on average) the resilience of the wool market at this moment is very reassuring. Particularly when we consider the wider market wool
operates in.
As investigated by Andrew Woods this week on Mecardo (read here), Apparel fibres (including wool) continue to work their way through a
cyclical downturn. The very nature of a cycle means that downturns are
eventually superseded by cyclical upturns, when that happens apparel prices
including wool will get a lift in demand and hence prices.
Next week
The wool market will have more volume to work through next week, with the offering to reach 45K bales per AWEX estimates, this is typical of this time of year (See Figure 2).
In the absence of a demand driver in the global economy attention will shift to supply. After a few weeks of declining auction volumes, total supply to auction for the season is now tracking behind last seasons year to date total which helps. However, the level of supply at the micron level will be critical, fine wool supply has been elevated (relative to last season) and pricing has reflected that.
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The Australian wool market returned from the Christmas and New Year recess with a strong re-rating across all selling centres, as buyers returned from the
The Australian wool market concluded the final sale week of 2025 in unspectacular fashion. The Eastern Market Indicator finished the week at 1541¢/kg, down 1¢,
Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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Cheaper Tuesday halts market gains
Next week
The wool market will have more volume to work through next week, with the offering to reach 45K bales per AWEX estimates, this is typical of this time of year (See Figure 2).
In the absence of a demand driver in the global economy attention will shift to supply. After a few weeks of declining auction volumes, total supply to auction for the season is now tracking behind last seasons year to date total which helps. However, the level of supply at the micron level will be critical, fine wool supply has been elevated (relative to last season) and pricing has reflected that. /span>
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Data sources: AWEX, AWI, Mecardo
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New year reset lifts wool market
The Australian wool market returned from the Christmas and New Year recess with a strong re-rating across all selling centres, as buyers returned from the
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Steady as she goes to wrap up 2025
The Australian wool market concluded the final sale week of 2025 in unspectacular fashion. The Eastern Market Indicator finished the week at 1541¢/kg, down 1¢,
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With the last wool auction sales being held this week in Australia, and South Africa auctions already in recess, it is timely to look at
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Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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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.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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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.