The Wool market rose again this week by 51¢ taking the EMI to 1767¢. Supply this week was lower after the previous weeks return sale from Lunar new year break. The result was significant price improvement across the board as buyers scrambled to secure stock and pass in rates dropped dramatically to just 2.1%.
This week’s bale offering was down by 26.6% – almost exactly reversing the previous weeks increase of 26.4%, leaving the weeks total at 37,212 bales offered. The Australian dollar fell to 70¢ against the greenback, helping to soften the increase for exporters in US dollar terms, the EMI in US dollars improving 13¢ to 1237¢.
The local market indicator gained significantly across all centers, enjoying a 55¢ rise to 1807¢ in Sydney, 49¢ rise to 1741¢ in Melbourne and adding 77¢ in the west to 1994¢. In Sydney, fine and medium merino enjoyed a strong week gaining across the board, particularly 19 MPG which enjoyed a 105¢ increase to 2217¢ and 19.5 MPG up 101¢ to 2146¢. Crossbred wool decreased slightly losing 7¢ in in 26 MPG to 888¢, while cardings built on last week’s 72¢ increase, rising a further 36¢ this week to 1004¢.
In Melbourne, similar gains were felt to Sydney in fine and medium merino with 16.5 MPG gaining 105¢ to 2413¢ and 17 MPG gaining 100¢ to 2398¢. Medium wool had similar gains with 21 MPG rising 75¢ to 2090¢ and crossbred wool dipped marginally, with 26 MPG decreasing by 6¢ to 889¢. Cardings in the south also built on last week’s 71¢ gain, finishing this week up 44¢ to 1029¢.
In the west, fine and medium merino enjoyed similar gains with 18.5 MPG being the highlight, gaining 141¢ to 2299¢ and 18 MPG gaining 126¢ to 2328¢. Cardings however fell 10¢ after last week’s 68¢ gain to 1038¢.
Recently on Mecardo, Andrew Woods took a look at the total supply of merino wool from the main southern hemisphere wool exporters filtering the volumes for non-mulesed and RWS accreditation (see article here). He noted that although Australia accounts for around 77% of the clean merino production from the southern hemisphere exporters, that when filtered for non-mulesed, the Australian proportion falls to around 39%.
The week ahead….
The EMI has been on an upward trend, adding 542¢ or 44.2% in the past 12 months largely caused by shortages on the supply side. This has elevated prices and decreased pass in rates, encouraging sellers to offer their bales now, projected to increase to 45,973 next week. Bales sales have generally been between 30,000 and 40,000 per week for more than a year (average of 32,609 since the start of 2025). The lift in offering this week will be a good test of clearance rates and will provide another test of this upward trend.
Sales are scheduled for Tuesday and Wednesday in Sydney and Fremantle and Wednesday and Thursday in Melbourne.
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Return to normal volumes boost prices
This week’s bale offering was down by 26.6% – almost exactly reversing the previous weeks increase of 26.4%, leaving the weeks total at 37,212 bales offered. The Australian dollar fell to 70¢ against the greenback, helping to soften the increase for exporters in US dollar terms, the EMI in US dollars improving 13¢ to 1237¢.
The local market indicator gained significantly across all centers, enjoying a 55¢ rise to 1807¢ in Sydney, 49¢ rise to 1741¢ in Melbourne and adding 77¢ in the west to 1994¢. In Sydney, fine and medium merino enjoyed a strong week gaining across the board, particularly 19 MPG which enjoyed a 105¢ increase to 2217¢ and 19.5 MPG up 101¢ to 2146¢. Crossbred wool decreased slightly losing 7¢ in in 26 MPG to 888¢, while cardings built on last week’s 72¢ increase, rising a further 36¢ this week to 1004¢.
In Melbourne, similar gains were felt to Sydney in fine and medium merino with 16.5 MPG gaining 105¢ to 2413¢ and 17 MPG gaining 100¢ to 2398¢. Medium wool had similar gains with 21 MPG rising 75¢ to 2090¢ and crossbred wool dipped marginally, with 26 MPG decreasing by 6¢ to 889¢. Cardings in the south also built on last week’s 71¢ gain, finishing this week up 44¢ to 1029¢.
In the west, fine and medium merino enjoyed similar gains with 18.5 MPG being the highlight, gaining 141¢ to 2299¢ and 18 MPG gaining 126¢ to 2328¢. Cardings however fell 10¢ after last week’s 68¢ gain to 1038¢.
Recently on Mecardo, Andrew Woods took a look at the total supply of merino wool from the main southern hemisphere wool exporters filtering the volumes for non-mulesed and RWS accreditation (see article here). He noted that although Australia accounts for around 77% of the clean merino production from the southern hemisphere exporters, that when filtered for non-mulesed, the Australian proportion falls to around 39%.
The week ahead….
The EMI has been on an upward trend, adding 542¢ or 44.2% in the past 12 months largely caused by shortages on the supply side. This has elevated prices and decreased pass in rates, encouraging sellers to offer their bales now, projected to increase to 45,973 next week. Bales sales have generally been between 30,000 and 40,000 per week for more than a year (average of 32,609 since the start of 2025). The lift in offering this week will be a good test of clearance rates and will provide another test of this upward trend.
Sales are scheduled for Tuesday and Wednesday in Sydney and Fremantle and Wednesday and Thursday in Melbourne.
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Data sources: AWEX, 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.
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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.