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The wool market posted strong results this week, marking two consecutive weeks in the green, with the Eastern Market Indicator rising 39c to 1458c. After a volatile October, the past fortnight has shown clear green shoots of renewed confidence, with buyer appetite returning as supply in key Merino combing categories tightens.

Supply remained manageable at 29,621 offered and 28,522 bales sold, with only a 3.7% pass-in rate, a notable shift from the 20% + pass-ins recorded just a couple of weeks ago

Fine and medium Merino fleece led the rise across all selling centres this week. In Sydney, the 17.5 MPG lifted 58c to 2008c/kg, while in Melbourne, the 18 MPG surged 77c to 1940c/kg and the 18.5 MPG gained 65c to 1861c/kg. In Fremantle, finer types also strengthened, with the 17.5 MPG adding 24c to 1962/kg. Mid-micron categories moved in unison, with the 19 MPG in Melbourne up 55c to 1788c/kg, while the 21 MPG in Melbourne rose 74c to 1733c/kg,

Crossbreds were steady to marginally firmer. In Melbourne, the 25 MPG rose 3c to 855c/kg, while the 28 MPG added 5c to 590c/kg, suggesting gradual stabilisation in this segment. Cardings softened slightly, with the Merino Carding Indicator at 805c/kg in Sydney and 732c/kg in Melbourne, continuing the trend of more cautious demand for lower-value categories.

This week in Mecardo, Andrew Woods reviewed the staple strength profile of the eastern-state clip, highlighting a clear weakening trend (see article here). He notes that early-November sales are showing staple strength levels not seen since around 2010, and he noted that discounts for low staple strength could widen toward 10 to 15% as the season progresses. He showed how that aligns with the strong premiums paid this week for sound, high-strength Merino fleece, which remain firmly supported by current supply-chain signals.

Next week

Next week has 33,750 bales on offer, with Fremantle selling on Tuesday only and Sydney and Melbourne selling on Tuesday and Wednesday. Offerings around 30,000–35,000 bales seem comfortable for the market, so we’ll see how that plays out.

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Click on graph to expand

Click on graph to expand

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Data sources: AWEX, AWI, Mecardo

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