The importance of China to the Australian wool market was dramatically reinforced this week, with an announcement by the Chinese government that the hard-line approach to CV 19 would be modified.
This caused mills to quickly increase orders via their exporters to secure supply for an expected ramping up of mill activity as a result of the expected less interrupted factory activity in the New Year.
The Eastern Market Indicator (EMI) rallied, gaining 54ȼ to 1278ȼ/kg, and with a stable Aussie dollar (+0.07ȼ to US$0.67), the EMI when expressed in US$ also improved 37ȼ to settle at 857ȼ/kg (US).
The Western market indicator also felt the new found demand, and following the lead from the east coast market, lifted 49ȼ to finish the week at 1419ȼ/kg.
With a three day sale scheduled, Melbourne sold on its own on Thursday, and in a positive pointer for next week all MPG’scontinued to lift with AWEX reporting an overall lift of 20 to 40 cents, while the 16.5 & 19.5 MPG’s were quoted 50 cents dearer on the day.
The Crossbreds section showed signs of life with the 28 MPG in Melbourne up 23ȼ, while the 30 MPG also posted a 12ȼ improvement across the week.
Cardings bucked the general market move and were quoted generally steady to easier, down 1ȼ in Sydney, back 12ȼ in Melbourne and lower by 9ȼ in Fremantle.
Another increased volume to last week of 40,716 was offered for sale, 3,000 up on last week. After 6.3% of the original rostered offering was withdrawn prior to sale, the pass-in rate fell as a result of the stronger market, down from 17.9% to 7.7% of this weeks offering.
As a result 38,787 bales were sold, a massive 6,500 more than last week. This was also well above the seasonal weekly average of 33,394 bales.
This week on Mecardo, Andrew Woods looked at the impact of the extraordinarily wet spring and summer period and the effect it has had on wool getting to market. There will be some delayed wool arriving into sale during the next 3-4 months, adding to sales volumes. In a time of weak demand this will put some downward pressure on price but growers have demonstrated their willingness to reduce volumes cleared to the trade if prices fall, thereby steadying the market.
The week ahead….
Next week sales have rostered an even larger offering of 49,803 bales for sale across the three selling centres. Fremantle & Sydney are selling on Tuesday & Wednesday, while Melbourne will again have a three day sale to cater for the increased offering.
The Australian wool market extended its winning streak this week, with the Eastern Market Indicator climbing 16¢ to finish at 1,693¢/kg ahead of next week’s
Greasy wool prices have increased markedly this season, in the absence of any substantial improvement in macroeconomic indicators or major apparel fibre prices, the usual
The Australian wool market recovered from the losses recorded in the previous series, with prices lifting across both selling days. The Eastern Market Indicator rose
Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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.
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.
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.
China Covid announcement lifts market
The Eastern Market Indicator (EMI) rallied, gaining 54ȼ to 1278ȼ/kg, and with a stable Aussie dollar (+0.07ȼ to US$0.67), the EMI when expressed in US$ also improved 37ȼ to settle at 857ȼ/kg (US).
The Western market indicator also felt the new found demand, and following the lead from the east coast market, lifted 49ȼ to finish the week at 1419ȼ/kg.
With a three day sale scheduled, Melbourne sold on its own on Thursday, and in a positive pointer for next week all MPG’scontinued to lift with AWEX reporting an overall lift of 20 to 40 cents, while the 16.5 & 19.5 MPG’s were quoted 50 cents dearer on the day.
The Crossbreds section showed signs of life with the 28 MPG in Melbourne up 23ȼ, while the 30 MPG also posted a 12ȼ improvement across the week.
Cardings bucked the general market move and were quoted generally steady to easier, down 1ȼ in Sydney, back 12ȼ in Melbourne and lower by 9ȼ in Fremantle.
Another increased volume to last week of 40,716 was offered for sale, 3,000 up on last week. After 6.3% of the original rostered offering was withdrawn prior to sale, the pass-in rate fell as a result of the stronger market, down from 17.9% to 7.7% of this weeks offering.
As a result 38,787 bales were sold, a massive 6,500 more than last week. This was also well above the seasonal weekly average of 33,394 bales.
This week on Mecardo, Andrew Woods looked at the impact of the extraordinarily wet spring and summer period and the effect it has had on wool getting to market. There will be some delayed wool arriving into sale during the next 3-4 months, adding to sales volumes. In a time of weak demand this will put some downward pressure on price but growers have demonstrated their willingness to reduce volumes cleared to the trade if prices fall, thereby steadying the market.
The week ahead….
Next week sales have rostered an even larger offering of 49,803 bales for sale across the three selling centres. Fremantle & Sydney are selling on Tuesday & Wednesday, while Melbourne will again have a three day sale to cater for the increased offering.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, Mecardo
Photo Credit: Sarah Parker
Categories
Have any questions or comments?
Market momentum persists ahead of Chinese New Year
The Australian wool market extended its winning streak this week, with the Eastern Market Indicator climbing 16¢ to finish at 1,693¢/kg ahead of next week’s
Broad merino price, volume and price ratio
Greasy wool prices have increased markedly this season, in the absence of any substantial improvement in macroeconomic indicators or major apparel fibre prices, the usual
Wool market finds its footing
The Australian wool market recovered from the losses recorded in the previous series, with prices lifting across both selling days. The Eastern Market Indicator rose
AWTA volumes January 2026
AWTA core test volumes have begun 2026 well down on year-earlier levels, as the effects of a dry spring in south eastern Australia continue to
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
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.
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.
SERVICES AND CAPABILITIES STATEMENT BROCHURE
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.