The Australian wool market stabilised this week, with the Eastern Market Indicator (EMI) down just 1 cent to 1,189 c/kg, despite currency swings impacting USD values. Offerings rose to 30,931 bales, with a pass-in rate of 8.9%. Season-to-date auction volumes total 1,410,070 bales, down 13.8% (226,420 bales) from last season, reflecting lower supply.
Despite a flat Eastern Market Indicator (EMI), Fine wools saw mixed fortunes with the 17.5 micron guide climbing 28 cents in Melbourne while Sydney’s market moved in the opposite direction, falling by 17 cents. Interestingly, in the fine wool market, the proportion of the Merino fleece offering with low (<1%) VM, good style (MF4), and strength (> 40 N/ktex) remained lower than last season (down 9.3%,12.3%, and 8% respectively)
Crossbred wool performed strongly, with the 26.0 to 32.0 MPGs showing consistent gains, with the 28 MPG in the North rising 15 cents, and the southern 26 MPG also rose by 12 cents. Skirtings remained stable across all regions, while oddments softened, particularly in the South, where lower-yielding lots with higher vegetable matter content were out of favour, dropping 29c to 680 cents.
A 90-day cut in U.S tariffs on Chinese wool products, from 145% to 30%, easing costs for American importers. The move benefits Chinese processors, who handle around 80% of Australia’s wool, and removes some risk of lower demand for crossbred wools used in versatile, cost-effective textile blends.
This week in Mecardo (see here), Andrew Woods explores the seasonal shortfall in auction offerings and questions whether fewer bales necessarily mean lower available supply. The article sheds light on structural changes in grower selling behaviour, which may be supporting current market resilience despite subdued demand.
Next week
Next week’s 30,266-bale offering signals steady volumes, with six weeks remaining in the 2024/25 season.
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
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Volume light, demand tight, and a flat EMI
Despite a flat Eastern Market Indicator (EMI), Fine wools saw mixed fortunes with the 17.5 micron guide climbing 28 cents in Melbourne while Sydney’s market moved in the opposite direction, falling by 17 cents. Interestingly, in the fine wool market, the proportion of the Merino fleece offering with low (<1%) VM, good style (MF4), and strength (> 40 N/ktex) remained lower than last season (down 9.3%,12.3%, and 8% respectively)
Crossbred wool performed strongly, with the 26.0 to 32.0 MPGs showing consistent gains, with the 28 MPG in the North rising 15 cents, and the southern 26 MPG also rose by 12 cents. Skirtings remained stable across all regions, while oddments softened, particularly in the South, where lower-yielding lots with higher vegetable matter content were out of favour, dropping 29c to 680 cents.
A 90-day cut in U.S tariffs on Chinese wool products, from 145% to 30%, easing costs for American importers. The move benefits Chinese processors, who handle around 80% of Australia’s wool, and removes some risk of lower demand for crossbred wools used in versatile, cost-effective textile blends.
This week in Mecardo (see here), Andrew Woods explores the seasonal shortfall in auction offerings and questions whether fewer bales necessarily mean lower available supply. The article sheds light on structural changes in grower selling behaviour, which may be supporting current market resilience despite subdued demand.
Next week
Next week’s 30,266-bale offering signals steady volumes, with six weeks remaining in the 2024/25 season.
Click on graph to expand
Click on graph to expand
Data sources: Mecardo, AWEX, AWI, Reuters
Categories
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.