After an extended run of weekly increases, the wool market checked this week. With the Eastern Market Indicator slipping 48¢ to 1517¢/kg, as the market recorded its first decline since July. Even with the easing, the EMI remains around 33% higher than the same time last year. The Western Market Indicator also softened, falling 40¢ to 1656¢/kg clean.
A public holiday-shortened selling week coincided with a larger national offering of 39,282 bales, of which 31,689 were sold. The market met resistance at current price levels, suggesting that an offering of around 40,000 bales was too rich for buyers. Consequently, the pass-in rate lifted to 19.3% (up from 2% last week), led by Western Australia at 28.8%, where nearly a third of Merino fleece was withdrawn. New South Wales and Victoria followed with pass-in rates of 16% and 18%, respectively
Fine and medium Merino fleece led the correction across all selling centres. In Sydney, the 17 MPG fell 78¢ to 2172¢/kg, while in Melbourne, the 18 MPG eased 72¢ to 2028¢/kg and the 18.5 MPG dropped sharply, losing 92¢ to 1947¢/kg. In Fremantle, finer types also retreated, with the 17.5 MPG down 63¢ to 2072¢/kg. The 19 MPG in Melbourne eased 55¢ to 1851¢/kg, while the 21 MPG in Fremantle slipped 43¢ to 1725¢/kg.
Crossbreds were also softer. In Melbourne, the 28 MPG fell 32¢ to 703¢/kg, while the 30 MPG edged 1¢ lower to 597¢/kg. Cardings were steady, with the Merino Carding Indicator holding at 791¢/kg in Melbourne. Overall, the finer and medium microns bore the brunt of the pullback across all regions as prices adjusted to the larger offering.
This week in Mecardo, Andrew Woods examined recent wool price volatility and what a correction might look like (see article here). In his article, he notes that greasy wool prices have lifted 26% to 37% (400 to 600 cents) since mid-2025 in key merino bands, placing the market at levels where a minor correction of 6% to 9% would be considered reasonable for merinos. And further noted that a correction smaller than these levels would be very positive for the market.
Next week
Looking ahead, 41,355 bales are rostered for sale next week, with auctions to be held on Tuesday and Wednesday across all selling centres.
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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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Market checks as larger offering tests buyer appetite
A public holiday-shortened selling week coincided with a larger national offering of 39,282 bales, of which 31,689 were sold. The market met resistance at current price levels, suggesting that an offering of around 40,000 bales was too rich for buyers. Consequently, the pass-in rate lifted to 19.3% (up from 2% last week), led by Western Australia at 28.8%, where nearly a third of Merino fleece was withdrawn. New South Wales and Victoria followed with pass-in rates of 16% and 18%, respectively
Fine and medium Merino fleece led the correction across all selling centres. In Sydney, the 17 MPG fell 78¢ to 2172¢/kg, while in Melbourne, the 18 MPG eased 72¢ to 2028¢/kg and the 18.5 MPG dropped sharply, losing 92¢ to 1947¢/kg. In Fremantle, finer types also retreated, with the 17.5 MPG down 63¢ to 2072¢/kg. The 19 MPG in Melbourne eased 55¢ to 1851¢/kg, while the 21 MPG in Fremantle slipped 43¢ to 1725¢/kg.
Crossbreds were also softer. In Melbourne, the 28 MPG fell 32¢ to 703¢/kg, while the 30 MPG edged 1¢ lower to 597¢/kg. Cardings were steady, with the Merino Carding Indicator holding at 791¢/kg in Melbourne. Overall, the finer and medium microns bore the brunt of the pullback across all regions as prices adjusted to the larger offering.
This week in Mecardo, Andrew Woods examined recent wool price volatility and what a correction might look like (see article here). In his article, he notes that greasy wool prices have lifted 26% to 37% (400 to 600 cents) since mid-2025 in key merino bands, placing the market at levels where a minor correction of 6% to 9% would be considered reasonable for merinos. And further noted that a correction smaller than these levels would be very positive for the market.
Next week
Looking ahead, 41,355 bales are rostered for sale next week, with auctions to be held on Tuesday and Wednesday across all selling centres.
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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.
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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.