Crossbred wools stand out of the flock

Sheep being shorn for wool

An increased offering of wool onto the market enabled buyers to be selective in their purchases. Merino fleece prices were mostly weaker, however, the crossbred segment resisted the trend and posted small improvements.

The Eastern Market Indicator (EMI) slid 8¢ over the week to 1163¢. This is the fourth consecutive week that the EMI has crept lower.  The Australian dollar faced a turbulent week, down 0.44¢ over the selling week to 65.28 US¢. Poor economic news in China triggered the loss at the start of the week before some ground was regained. In USD terms, the EMI fell 10¢ over the week to 759¢/kg which is the lowest point since November ’23. For overseas buyers, the market looks cheap from a historical perspective, but needs a demand pull with these volumes on offer.

Demand was also lacklustre in Fremantle with the Western Market Indicator dropping 10¢ to 1291¢/kg this week. However, the fleece market managed to find some strength on Wednesday, spurred on by good price improvements in the finer microns which will hopefully flow through to next week.

Market reports suggested buyers remain picky, seeking well-measured lots with low CVH. The designated superfine sale in Sydney saw good demand for MF1 to MF3 lots, however, the market was generally softer for other fine Merino fleece. On the other end of the micron spectrum, crossbred fleece was again the more positive story of the week. It was demand for well-prepared crossbred lots that gave prices a leg up. 28MPG in Melbourne declined slightly over the week, but all other microns picked up an additional 3 to 5¢.

The offering of 38,811 bales was an additional 5,912 on last week’s sale, which proved a little too much supply pressure. Producers’ willingness to sell was largely unchanged, with a pass-in rate of 9.8% this week. 

Next week

All three selling centres will be running on Tuesday and Wednesday next week, with a Thursday sale also in Melbourne. 43,624 bales are currently expected for sale which will continue to test the market. 

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Click on graph to expand

Click on graph to expand

Data sources: AWEX, Nutrien Ag Solutions, Mecardo

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