Wool prices extended their rally this week, with the EMI lifting 25¢ to finish at 1344¢/kg clean, its highest level since March 2023 and 22.4% higher year-on-year. The momentum in pricing is a welcome change for producers after the consistent easing that marked the recent low point in the wool cycle. A total of 28,788 bales were sold, with 3.8% passed in. Sydney recorded the lowest pass-in at 2%, while Melbourne reached 5.1% and Fremantle 4.4%.
Merino fleece continued to strengthen, with the 18 MPG closing at 1787¢ in Sydney and 1796¢ in Melbourne, while the 17 MPG lifted to 1877¢ and 1903¢ respectively. Skirtings tracked higher across both centres, supported by consistent demand for low-VM lots. Crossbreds also improved, with the 28 MPG in Sydney lifting 60¢ to 610¢, the 26 MPG in Melbourne rising 64¢ to 828¢, and the 30 MPG adding 11¢ to 498¢, reflecting strong competition for limited supply.
Fremantle joined the rally, with finer fleece gaining up to 40¢ and the 18 MPG closing at 1745¢. Skirtings lifted 5 to 10¢ and broader oddments added around 10¢, taking the Western Merino Carding Indicator to 824¢. The Western Market Indicator finished the week at 1480¢, now 19.9% higher than the same time last year, underlining the strength of the recovery.
The Australian dollar has strengthened significantly, rising nearly 12% since its April low. The rally was fuelled by expectations of, and the subsequent 25-basis-point cut delivered by, US Federal Reserve Chairman Jerome Powell on Thursday morning, alongside strong commodity prices and improved global risk appetite. These factors have underpinned the AUD’s momentum that flowed into the Wool market this week
This Week in Mecardo, Andrew Woods examined RWS premiums in the 19 MPG category (see article here) He looked at wools of comparable quality between Australian and South African, finding that prices are very similar, both for RWS-accredited and non-accredited lots.
The week ahead….
Next week’s national offering of 30,621 bales will be sold in Sydney and Melbourne on Tuesday the 23rd and Wednesday the 24th, with Fremantle selling on Tuesday the 23rd.
The Australian wool market saw a modest rise this week with the Eastern Market Indicator (EMI) increasing 16¢ to 1783¢, driven primarily by a increased
Synthetic fibres rely heavily (like most supply chains) on Oil, and the conflict in the Middle East presents a number of challenges for agricultural markets,
The mention of an El Nino has the scribes seeking forecasts and projections for agricultural commodities through production to price. This article takes a look
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Market maintains the momentum
Merino fleece continued to strengthen, with the 18 MPG closing at 1787¢ in Sydney and 1796¢ in Melbourne, while the 17 MPG lifted to 1877¢ and 1903¢ respectively. Skirtings tracked higher across both centres, supported by consistent demand for low-VM lots. Crossbreds also improved, with the 28 MPG in Sydney lifting 60¢ to 610¢, the 26 MPG in Melbourne rising 64¢ to 828¢, and the 30 MPG adding 11¢ to 498¢, reflecting strong competition for limited supply.
Fremantle joined the rally, with finer fleece gaining up to 40¢ and the 18 MPG closing at 1745¢. Skirtings lifted 5 to 10¢ and broader oddments added around 10¢, taking the Western Merino Carding Indicator to 824¢. The Western Market Indicator finished the week at 1480¢, now 19.9% higher than the same time last year, underlining the strength of the recovery.
The Australian dollar has strengthened significantly, rising nearly 12% since its April low. The rally was fuelled by expectations of, and the subsequent 25-basis-point cut delivered by, US Federal Reserve Chairman Jerome Powell on Thursday morning, alongside strong commodity prices and improved global risk appetite. These factors have underpinned the AUD’s momentum that flowed into the Wool market this week
This Week in Mecardo, Andrew Woods examined RWS premiums in the 19 MPG category (see article here) He looked at wools of comparable quality between Australian and South African, finding that prices are very similar, both for RWS-accredited and non-accredited lots.
The week ahead….
Next week’s national offering of 30,621 bales will be sold in Sydney and Melbourne on Tuesday the 23rd and Wednesday the 24th, with Fremantle selling on Tuesday the 23rd.
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Data sources: AWEX, Mecardo
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Higher supply raises pass in rates
The Australian wool market saw a modest rise this week with the Eastern Market Indicator (EMI) increasing 16¢ to 1783¢, driven primarily by a increased
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Synthetic fibres rely heavily (like most supply chains) on Oil, and the conflict in the Middle East presents a number of challenges for agricultural markets,
Return to normal volumes boost prices
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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.