The increased offering of wool bales stirred a range of outcomes this week, particularly affecting the finer micron wool segments. On balance, the Eastern Market Indicator fell 2¢ to 1,142¢/kg in AUD terms and fell 7¢ week on week in USD terms.
An additional 5,059 bales were on offer this week compared
to the last tested price levels. With fine wool volumes in high supply relative
to broader micron wool, the added volume this week saw the most pressure on the
fine end of the spectrum.Results were mixed between Merino auction
results. 21 micron and finer in Melbourne overall declined up to 15¢, while
22-23 MPG managed to improve 5-10¢. In Sydney, there was little change on last week’s
results for Merino fleece. Well-measured lots continue to be rewarded but the
17.5 & 18 MPGs closed 10 and 16¢ lower largely due to poorer style. In
Fremantle finer (<19.5 μm) lots were firm with a limited supply of broader
lots up to 20¢ dearer on Tuesday before the sector softened on Wednesday.
Crossbred results were also mixed, ranging from a minor
2¢ lift to a 7¢ loss across Sydney and Melbourne. Supply of crossbred wool has
been at low levels compared to last year but is approaching the seasonal peak
in supply so there may be pressure to come. Merino cardings in Melbourne and
Fremantle were a bright spark for the week, up 18 and 10¢ respectively.
Cardings in Sydney are still setting the top average price though at 706¢/kg.
With the market softer in some segments
the pass-in rate climbed to 9.3% for the week. This left 34,836 bales sold
which is 10% higher than the average 31,742 bales sold this season to date.
AWEX reports from the Zhangjiagang Wool Industrial
Association conference in China this week, note that while “demand signals were
downbeat”, “next year is expected to be a big year for uniform orders”. Let’s
hope they are right. For the wider apparel fibre sector the waiting game for a
pickup in economic growth to break away from the base of the down price cycle
continues. According to an analysis by Andrew Woods this week (read
here), Merino prices (with some exceptions) continue on their normal course
of following the path of cotton, polyester, acrylic and viscose.
Next week
Another sizeable offering of 39,896 bales is currently forecast for sale next week. All centres will be selling on Tuesday and Wednesday in what will be the second last auction week of the year before the auction market closes for the Christmas recess.
With the eternal battle between enterprises for farm resources continuing, it is interesting to stand back and see what has changed and what hasn’t between
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In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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Dressing for success in 2025?
An additional 5,059 bales were on offer this week compared to the last tested price levels. With fine wool volumes in high supply relative to broader micron wool, the added volume this week saw the most pressure on the fine end of the spectrum. Results were mixed between Merino auction results. 21 micron and finer in Melbourne overall declined up to 15¢, while 22-23 MPG managed to improve 5-10¢. In Sydney, there was little change on last week’s results for Merino fleece. Well-measured lots continue to be rewarded but the 17.5 & 18 MPGs closed 10 and 16¢ lower largely due to poorer style. In Fremantle finer (<19.5 μm) lots were firm with a limited supply of broader lots up to 20¢ dearer on Tuesday before the sector softened on Wednesday.
Crossbred results were also mixed, ranging from a minor 2¢ lift to a 7¢ loss across Sydney and Melbourne. Supply of crossbred wool has been at low levels compared to last year but is approaching the seasonal peak in supply so there may be pressure to come. Merino cardings in Melbourne and Fremantle were a bright spark for the week, up 18 and 10¢ respectively. Cardings in Sydney are still setting the top average price though at 706¢/kg.
With the market softer in some segments the pass-in rate climbed to 9.3% for the week. This left 34,836 bales sold which is 10% higher than the average 31,742 bales sold this season to date.
AWEX reports from the Zhangjiagang Wool Industrial Association conference in China this week, note that while “demand signals were downbeat”, “next year is expected to be a big year for uniform orders”. Let’s hope they are right. For the wider apparel fibre sector the waiting game for a pickup in economic growth to break away from the base of the down price cycle continues. According to an analysis by Andrew Woods this week (read here), Merino prices (with some exceptions) continue on their normal course of following the path of cotton, polyester, acrylic and viscose.
Next week
Another sizeable offering of 39,896 bales is currently forecast for sale next week. All centres will be selling on Tuesday and Wednesday in what will be the second last auction week of the year before the auction market closes for the Christmas recess.
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Click on graph to expand
Click on graph to expand
Data sources: Nutrien Ag Solutions, AWEX, AWI, Mecardo
Categories
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History of the Southern hemisphere sheep flock
The recent AWPFC forecast for wool production to be down to levels of the early 1920s (and 2019) warrants a look at what has been
Wool production changes across Australia’s sheep regions
With the eternal battle between enterprises for farm resources continuing, it is interesting to stand back and see what has changed and what hasn’t between
More of the same for wool
Compared to last week it was a similar offering, same pass-in rate, and limited market moves. The wool market delivered again on its 2024 theme
Lower volumes and finer wools
Change in wool supply is always an issue with regard to the relative price of wool of varying quality (be that breed, micron, staple length,
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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.
Research: Analysis of the Australian sheep flock
In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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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.