Volumes remain modest, but dollar help could be on the way?

Sheep muster in outback Queensland near Charleville.

The wool market has maintained its steady start to the new selling season, posting its second consecutive weekly rise. The Eastern Market Indicator (EMI) closed 4 cents higher at 1212 cents per kilogram. Volumes remained modest, with 29,275 bales offered nationally, of which 26,943 found buyers. The national pass-in rate edged up slightly to 8.0 %.

In Sydney, merino fleece attracted solid bidding, with the 17 micron guide lifting 25 cents to 1688 cents per kilogram, while 17.5 micron gained 17 cents to 1650 cents. Melbourne showed similar firmness, although price movements were smaller, ranging between unchanged and up 14 cents for most micron categories. Fremantle was more mixed, with the 18, 20, and 21 micron types finding support late in the day, while broader microns slipped slightly.

Crossbreds eased from recent highs, unable to maintain the momentum seen earlier in winter. The 28 micron indicator in Melbourne managed a 10-cent gain to close at 490 cents, but other crossbred categories were generally unchanged or slightly lower.

Amid the Reserve Bank’s recent decision to hold interest rates steady and ongoing geopolitical uncertainty, the Australian dollar fell slightly against the US dollar this week. Volatility in currency saw the biggest change in buyer momentum last season and the latest iteration of trade debates is likely to provide a platform for more volatility again.

This week in Mecardo, Andrew Woods recapped the 2024/25 wool season (see article here). He highlighted the 11.8 % fall in farm-tested volumes amid dry conditions and softer demand. While tight supply helped lift prices for superfine and broader merino wool, mid-micron types struggled under weaker apparel markets. In the season, crossbred wool defied the trend, with both volumes and prices higher, reflecting firmer demand in those categories.

Next week

Looking ahead, with only Sydney and Melbourne operating next week as Fremantle takes a recess. Current rosters show that around 23,990 bales will be offered for sale

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Data sources: AWEX, Mecardo

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