As reported last week, it felt like the wool market was stirring on the back of positive Chinese economic stimulus. This week it posted the largest weekly rise in 15 months and managed to clear all but 590 bales that were offered for sale.
It was a disjointed selling week with
Sydney taking Monday off to digest the Penrith premiership, sales were spread
across three selling days with all centres reporting strong price lifts on all
selling days.
Keen demand for Merino fleece and Merino
skirtings pushed the EMI up 35 cents to 1,139 c/kg clean. A slightly weaker US$
saw the market lift a more modest 3 c/kg clean in US$ terms.
Growers responded positively to the
improved bidding, passing just 1.8% of the 31,951 bales offered, for a
clearance of 31,365 bales. Wool producers have also shown a willingness to sell
into this rally with 42,000 bales listed for next week.
It will be interesting to see if
increased volume dampens this rally, or is it as one wool broker noted,
“perhaps the start of the big rally?”
The Western
wool market was the standout in a positive week, the Western Market Indicator
improved 51¢ to 1281¢/kg. Of
note was the 96 c/kg clean lift in the 18 MPG category.
This week on
Mecardo, Andrew Woods looked at the supply & price outlook for medium &
broad wool, making the comparison between Non-Wool Staple Fibre (NWSF). (read more here). The 21 MPG looks to be well below fair value
in relation to NWSF prices currently. NWSF prices are also low at present,
reflecting weak demand for apparel at the retail level. There looks to be
plenty of upside for both the NWSF price and the ratio of the 21 MPG to the
NWSF in the next few years.
Next week
All eyes will be on the upcoming sales, the long period of weak markets has many in the industry preparing for a rally, is this it?
Next week’s offering is currently rostered at 42,000 bales with all centres selling on Tuesday & Wednesday.
This week the wool bale offering was lower, with a Western Australian public holiday pausing auctions in Fremantle for the week. The offering of 23,413
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Optimism a plenty
It was a disjointed selling week with Sydney taking Monday off to digest the Penrith premiership, sales were spread across three selling days with all centres reporting strong price lifts on all selling days.
Keen demand for Merino fleece and Merino skirtings pushed the EMI up 35 cents to 1,139 c/kg clean. A slightly weaker US$ saw the market lift a more modest 3 c/kg clean in US$ terms.
Growers responded positively to the improved bidding, passing just 1.8% of the 31,951 bales offered, for a clearance of 31,365 bales. Wool producers have also shown a willingness to sell into this rally with 42,000 bales listed for next week.
It will be interesting to see if increased volume dampens this rally, or is it as one wool broker noted, “perhaps the start of the big rally?”
The Western wool market was the standout in a positive week, the Western Market Indicator improved 51¢ to 1281¢/kg. Of note was the 96 c/kg clean lift in the 18 MPG category.
This week on Mecardo, Andrew Woods looked at the supply & price outlook for medium & broad wool, making the comparison between Non-Wool Staple Fibre (NWSF). (read more here). The 21 MPG looks to be well below fair value in relation to NWSF prices currently. NWSF prices are also low at present, reflecting weak demand for apparel at the retail level. There looks to be plenty of upside for both the NWSF price and the ratio of the 21 MPG to the NWSF in the next few years.
Next week
All eyes will be on the upcoming sales, the long period of weak markets has many in the industry preparing for a rally, is this it?
Next week’s offering is currently rostered at 42,000 bales with all centres selling on Tuesday & Wednesday.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: Mecardo
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Have any questions or comments?
Another big drop in volumes
This week the wool bale offering was lower, with a Western Australian public holiday pausing auctions in Fremantle for the week. The offering of 23,413
Ultrafine wool update
It is a year since Mecardo last looked at the very fine edge of the merino micron distribution in terms of price and volume. Quite
Supply plummets, boosting prices
The Eastern Market Indicator (EMI) jumped this week as buyers bid strongly in a tighter supplied market. The EMI was up 54¢ to finish at
International sheep meat supply and lamb price
Sheep meat prices (a weighted average of lamb and mutton) in 2026 are tracking at their best levels in deflated terms at least since 1980,
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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.