The wool market posted a modest gain this week, with the Eastern Market Indicator (EMI) rising one cent to close at 1,204 cents per kilogram.
The Northern Indicator rose four cents to 1,241 cents, and the Western Market Indicator added two cents to finish at 1,366 cents. The Southern market indicator remained unchanged at 1,180 cents. Supply volumes held steady, with 26,278 bales offered nationally and a pass-in rate of 9.3%. A key trend this week was a lift in low-vegetable matter Merino fleece, rising from 31.7% to 39.4% of the total offering.
Micron price movements were mixed across the eastern states and Fremantle. In Sydney, the 18 MPG lifted by 19 cents, while the 17-micron category fell 23 cents. Melbourne followed a similar trend, with the 16.5-micron MPG easing by 24 cents. However, broader microns from 18 to 21 microns were largely unchanged or showed minor gains. Fremantle displayed relative strength, particularly in the 18 to 18.5 micron range, which rose by 11 to 14 cents, reflecting sustained demand for finer types in that market.
Global demand for wool showed some mixed signals this week. In China, our largest market, April retail sales grew 5.1% year-on-year but fell short of the 5.9% March growth and missed forecasts. Reuters reported that this slowdown reflects cautious consumer spending. Despite government stimulus measures, consumer confidence remains low, though January-February retail sales still increased 4.0% compared to last year. European sentiment is improving. The European Commission reported that economic concerns dropped from 56% to 47% in Q1 2025. This recovery, combined with seasonal wool demand, is supporting prices for the premium Australian wool grades.
This week in Mecardo, Andrew Woods provided an update on sheep and lamb offtake to look at where the flock is heading (read more here). Sheep and lamb sales to abattoirs indicate a “normal” response to dry conditions in the southern regions of eastern Australia, but estimates suggest that the WA flock is shrinking by 16% this season. Looking ahead, this will have a tangible impact on WA wool volumes due to the high proportion of merino sheep in the WA flock.
Next week
Looking ahead, 23,655 bales are currently rostered for sale next week in only Sydney and Melbourne.
Wool production volumes have been under strong downward pressure during the past year as a combination of dry seasonal conditions, increased costs, and low prices
Despite early buyer interest in the reduced supply, softer demand for finer Merino weighed on the market, while the crossbreds and courser segments showed resilience.
Non-mulesed accreditation is a stepping stone to qualification of various quality schemes, which in turn are stepping stones to premiums in the greasy wool market
Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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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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Quiet week as winter approaches
The Northern Indicator rose four cents to 1,241 cents, and the Western Market Indicator added two cents to finish at 1,366 cents. The Southern market indicator remained unchanged at 1,180 cents. Supply volumes held steady, with 26,278 bales offered nationally and a pass-in rate of 9.3%. A key trend this week was a lift in low-vegetable matter Merino fleece, rising from 31.7% to 39.4% of the total offering.
Micron price movements were mixed across the eastern states and Fremantle. In Sydney, the 18 MPG lifted by 19 cents, while the 17-micron category fell 23 cents. Melbourne followed a similar trend, with the 16.5-micron MPG easing by 24 cents. However, broader microns from 18 to 21 microns were largely unchanged or showed minor gains. Fremantle displayed relative strength, particularly in the 18 to 18.5 micron range, which rose by 11 to 14 cents, reflecting sustained demand for finer types in that market.
Global demand for wool showed some mixed signals this week. In China, our largest market, April retail sales grew 5.1% year-on-year but fell short of the 5.9% March growth and missed forecasts. Reuters reported that this slowdown reflects cautious consumer spending. Despite government stimulus measures, consumer confidence remains low, though January-February retail sales still increased 4.0% compared to last year. European sentiment is improving. The European Commission reported that economic concerns dropped from 56% to 47% in Q1 2025. This recovery, combined with seasonal wool demand, is supporting prices for the premium Australian wool grades.
This week in Mecardo, Andrew Woods provided an update on sheep and lamb offtake to look at where the flock is heading (read more here). Sheep and lamb sales to abattoirs indicate a “normal” response to dry conditions in the southern regions of eastern Australia, but estimates suggest that the WA flock is shrinking by 16% this season. Looking ahead, this will have a tangible impact on WA wool volumes due to the high proportion of merino sheep in the WA flock.
Next week
Looking ahead, 23,655 bales are currently rostered for sale next week in only Sydney and Melbourne.
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Click on graph to expand
Click on graph to expand
Data sources: Mecardo, AWEX, Reuters, European Commission
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Merino and non-merino wool volumes in Australia
Wool production volumes have been under strong downward pressure during the past year as a combination of dry seasonal conditions, increased costs, and low prices
Crossbreds outshine merino in tight week
Despite early buyer interest in the reduced supply, softer demand for finer Merino weighed on the market, while the crossbreds and courser segments showed resilience.
State of origin in non-mulesed wool
Non-mulesed accreditation is a stepping stone to qualification of various quality schemes, which in turn are stepping stones to premiums in the greasy wool market
Quiet week as winter approaches
The wool market posted a modest gain this week, with the Eastern Market Indicator (EMI) rising one cent to close at 1,204 cents per kilogram.
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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.