The wool market posted another remarkable lift this week, with the Eastern Market Indicator rising 112¢ to finish at 1,565¢/kg clean, up 7.7% on the previous week. This was the 5th largest weekly increase since reporting began, extending the rally to 11 consecutive weeks and lifting the EMI by 358¢ over that period. Year-on-year, the EMI is now 461¢ higher, a gain of 41.8%.
Merino fleece categories recorded triple-digit gains across all selling centres. In Sydney, the 17 MPG increased by 180¢ to 2,250¢/kg, while the 18 MPG rose by 135¢ to 2,100¢/kg. Melbourne reported the 17.5 MPG up 164¢ to 2,197¢/kg and the 19 MPG up 151¢ to 1,931¢/kg. Fremantle saw similar strength, with the 17.5 MPG increasing 165¢ and the 18 MPG up 154¢. Broader Merino categories also advanced, with the 20 MPG rising by around 129. Crossbred fleece finished the week 60 to 70¢ higher, while cardings closed with smaller gains, ending 5 to 15¢ stronger, with the Sydney MC finishing at 823¢/kg clean.
This week’s national offering reached 34,597 bales, with 33,892 sold and only 2% passed in. Clearance rates were high across all centres, with Sydney at 97.8%, Melbourne at 98.1% and Fremantle at 98.6%. Despite this strong weekly clearance, broader supply remains constrained. Interestingly, ATWA data reported that wool volumes tested from July to September were 16.1% lower than the same period last year, with September alone down 13% year-on-year. This indicates that the pipeline of wool available for sale is materially tighter than last season. Even though weekly offerings have lifted in recent sales, the overall supply base remains constrained, meaning buyers are competing over a smaller pool of fibre.
This week in Mecardo, Andrew Woods examined the 21 MPG, where supply has fallen sharply over the past three decades (see article here). He showed that about two-thirds of the variation in its price can be explained by this flock contraction when measured against non-wool fibre prices. He found that September’s average of 1,407c/kg clean was close to the modelled fair value of 1,448c, suggesting prices are now aligned with fundamentals.
Next week
Next week sees 40,904 bales rostered, with Fremantle and Melbourne selling on Tuesday and Wednesday, and Sydney on Wednesday and Thursday. With prices having surged sharply in recent weeks, the larger offering will test the strength of demand.
The higher Australian dollar has prompted questions about the likely impact on local extensive agricultural commodity prices. Mecardo has covered this topic before. The relationship
The Australian wool market extended its winning streak this week, with the Eastern Market Indicator climbing 16¢ to finish at 1,693¢/kg ahead of next week’s
Greasy wool prices have increased markedly this season, in the absence of any substantial improvement in macroeconomic indicators or major apparel fibre prices, the usual
The Australian wool market recovered from the losses recorded in the previous series, with prices lifting across both selling days. The Eastern Market Indicator rose
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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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Tight supply underscores wool’s ongoing surge
Merino fleece categories recorded triple-digit gains across all selling centres. In Sydney, the 17 MPG increased by 180¢ to 2,250¢/kg, while the 18 MPG rose by 135¢ to 2,100¢/kg. Melbourne reported the 17.5 MPG up 164¢ to 2,197¢/kg and the 19 MPG up 151¢ to 1,931¢/kg. Fremantle saw similar strength, with the 17.5 MPG increasing 165¢ and the 18 MPG up 154¢. Broader Merino categories also advanced, with the 20 MPG rising by around 129. Crossbred fleece finished the week 60 to 70¢ higher, while cardings closed with smaller gains, ending 5 to 15¢ stronger, with the Sydney MC finishing at 823¢/kg clean.
This week’s national offering reached 34,597 bales, with 33,892 sold and only 2% passed in. Clearance rates were high across all centres, with Sydney at 97.8%, Melbourne at 98.1% and Fremantle at 98.6%. Despite this strong weekly clearance, broader supply remains constrained. Interestingly, ATWA data reported that wool volumes tested from July to September were 16.1% lower than the same period last year, with September alone down 13% year-on-year. This indicates that the pipeline of wool available for sale is materially tighter than last season. Even though weekly offerings have lifted in recent sales, the overall supply base remains constrained, meaning buyers are competing over a smaller pool of fibre.
This week in Mecardo, Andrew Woods examined the 21 MPG, where supply has fallen sharply over the past three decades (see article here). He showed that about two-thirds of the variation in its price can be explained by this flock contraction when measured against non-wool fibre prices. He found that September’s average of 1,407c/kg clean was close to the modelled fair value of 1,448c, suggesting prices are now aligned with fundamentals.
Next week
Next week sees 40,904 bales rostered, with Fremantle and Melbourne selling on Tuesday and Wednesday, and Sydney on Wednesday and Thursday. With prices having surged sharply in recent weeks, the larger offering will test the strength of demand.
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: Mecardo, ATWA, AWEX, AWI
Categories
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The Australian wool market extended its winning streak this week, with the Eastern Market Indicator climbing 16¢ to finish at 1,693¢/kg ahead of next week’s
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Greasy wool prices have increased markedly this season, in the absence of any substantial improvement in macroeconomic indicators or major apparel fibre prices, the usual
Wool market finds its footing
The Australian wool market recovered from the losses recorded in the previous series, with prices lifting across both selling days. The Eastern Market Indicator rose
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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.