Despite early buyer interest in the reduced supply, softer demand for finer Merino weighed on the market, while the crossbreds and courser segments showed resilience.
The wool market eased this week, with the Eastern Market Indicator (EMI) slipping 5 cents to 1199 c/kg. Fremantle’s absence left Sydney and Melbourne to trade a lean 22,806 bales, the smallest offering since the COVID-19 disrupted spring of 2020.
A modest rise in the Aussie dollar helped cushion the EMI’s decline in US dollar terms, closing just 1 cent lower at 775 US cents. Regionally, the Northern Indicator dropped 10 cents to 1,231 cents, while the Southern Indicator eased 2 cents to 1,178 cents. National pass-in rates climbed to 9.9%, with Melbourne recording higher rates than Sydney.
In Sydney, the 17 MPG was the only Merino fleece indicator to lift, edging up 1 cent to 1634 cents. Broader Merino types were weaker, with the 18 and 19 MPGs falling 33 and 18 cents, respectively, as buyer selectivity increased as we near the season’s close. Crossbred MPGs continued to trend upward, with the 26 MPG rising 14 cents to 626 cents and the 28 MPG up 20 cents to 426 cents.
Melbourne displayed similar crossbred strength, while non-mulesed Merino fleece attracted solid demand. The 17.5 MPG held steady at 1,624 cents per kilogram, while the 18 MPG eased 3 cents to 1,587 cents. Crossbreds maintained their firm tone, with the 26 MPG advancing 9 cents to 626 cents per kilogram, reinforcing the sector’s continued appeal to buyers.
This week, Mecardo’s Andrew Woods (see article here) highlighted the growing premium for non-mulesed wool, with finer Merino lots commanding up to 20% higher prices in Melbourne. This trend underscores the market’s shift toward sustainable practices, boosting returns for certified non-mulesed woolgrowers.
The week ahead….
Next week, we see Fremantle return to the selling program, joining Sydney and Melbourne, with a national offering of 30,187 bales currently rostered
The wool supply chain operates on averages for expected production in terms of quality. Quality varies through the season normally, with staple strength and vegetable
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Crossbreds outshine merino in tight week
The wool market eased this week, with the Eastern Market Indicator (EMI) slipping 5 cents to 1199 c/kg. Fremantle’s absence left Sydney and Melbourne to trade a lean 22,806 bales, the smallest offering since the COVID-19 disrupted spring of 2020.
A modest rise in the Aussie dollar helped cushion the EMI’s decline in US dollar terms, closing just 1 cent lower at 775 US cents. Regionally, the Northern Indicator dropped 10 cents to 1,231 cents, while the Southern Indicator eased 2 cents to 1,178 cents. National pass-in rates climbed to 9.9%, with Melbourne recording higher rates than Sydney.
In Sydney, the 17 MPG was the only Merino fleece indicator to lift, edging up 1 cent to 1634 cents. Broader Merino types were weaker, with the 18 and 19 MPGs falling 33 and 18 cents, respectively, as buyer selectivity increased as we near the season’s close. Crossbred MPGs continued to trend upward, with the 26 MPG rising 14 cents to 626 cents and the 28 MPG up 20 cents to 426 cents.
Melbourne displayed similar crossbred strength, while non-mulesed Merino fleece attracted solid demand. The 17.5 MPG held steady at 1,624 cents per kilogram, while the 18 MPG eased 3 cents to 1,587 cents. Crossbreds maintained their firm tone, with the 26 MPG advancing 9 cents to 626 cents per kilogram, reinforcing the sector’s continued appeal to buyers.
This week, Mecardo’s Andrew Woods (see article here) highlighted the growing premium for non-mulesed wool, with finer Merino lots commanding up to 20% higher prices in Melbourne. This trend underscores the market’s shift toward sustainable practices, boosting returns for certified non-mulesed woolgrowers.
The week ahead….
Next week, we see Fremantle return to the selling program, joining Sydney and Melbourne, with a national offering of 30,187 bales currently rostered
Have any questions or comments?
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Data sources: AWEX, AWI, Mecardo
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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.