The wool market returned from its three-week Christmas break making a very strong start to 2025. The market was assisted by a weaker AU dollar which encouraged predictions of a good market opening. This was certainly confirmed with buyers stepping up to a relatively large catalogue.
AWEX reported that from the opening bids were stronger
across the range, with the benchmark Eastern Market Indicator (EMI) recording 34¢
rise on Tuesday and holding a further 2¢ lift on the final day to close at 1190
cents. This places the EMI at its highest level since January 2024.
In US$ terms, a 7¢ lift for the week reflected the AU$
falling 1.36 cents against the US$ compared to the last sale of 2024.
All Merino MPGs improved, with rises of 40 to 50¢ compared
to the last sale last year.
Fremantle followed suit with the Western Market Indicator (WMI)
lifting 41¢, with individual Merino MPG posting 46 to 59¢ lifts.
Crossbreds were not to be outdone, performing strongly with price
rises across the MPG range on both sale days. The 26 MPG ended up 35¢ to 585¢,
while the 32 MPG lifted a more modest 12¢ to 320¢.
The regional carding indicators rose by 5 and 29¢ in Sydney
and Melbourne respectively, with Fremantle also stronger lifting 24¢ for the
week.
Of the 44,434 bales offered, 42,537 were eventually sold,
with a pass-in rate of 4.3% nationally. This was 9,700 bales more than the last
sale and 10,000 bales more than the weekly average for the season to date. As a
show of strength, this week was the first selling week since April last year
when more than 40,000 bales were cleared to the trade.
This week on Mecardo,
Andrew Woods looks at the recent Australian Wool Production Forecasting
Committees (AWPFC) wool forecast and delves into the other wool-producing
nations’ forward estimates for production. This is timely, as the wool market
seems poised for some improvement. However, any shortage of supply is likely to
increase market volatility.
Next week
Next week’s sales will occur over two days, with 48,930 bales currently rostered for sale. This will test the market rally, with early reports suggesting the rally this week may be too strong. Some form of correction is likely coming next week.
This week’s market continued to show stronger prices despite the increased bales on offer as sellers responded to the rising market. The Eastern Market Indicator
Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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Weak dollar welcomes wool
AWEX reported that from the opening bids were stronger across the range, with the benchmark Eastern Market Indicator (EMI) recording 34¢ rise on Tuesday and holding a further 2¢ lift on the final day to close at 1190 cents. This places the EMI at its highest level since January 2024.
In US$ terms, a 7¢ lift for the week reflected the AU$ falling 1.36 cents against the US$ compared to the last sale of 2024.
All Merino MPGs improved, with rises of 40 to 50¢ compared to the last sale last year.
Fremantle followed suit with the Western Market Indicator (WMI) lifting 41¢, with individual Merino MPG posting 46 to 59¢ lifts.
Crossbreds were not to be outdone, performing strongly with price rises across the MPG range on both sale days. The 26 MPG ended up 35¢ to 585¢, while the 32 MPG lifted a more modest 12¢ to 320¢.
The regional carding indicators rose by 5 and 29¢ in Sydney and Melbourne respectively, with Fremantle also stronger lifting 24¢ for the week.
Of the 44,434 bales offered, 42,537 were eventually sold, with a pass-in rate of 4.3% nationally. This was 9,700 bales more than the last sale and 10,000 bales more than the weekly average for the season to date. As a show of strength, this week was the first selling week since April last year when more than 40,000 bales were cleared to the trade.
This week on Mecardo, Andrew Woods looks at the recent Australian Wool Production Forecasting Committees (AWPFC) wool forecast and delves into the other wool-producing nations’ forward estimates for production. This is timely, as the wool market seems poised for some improvement. However, any shortage of supply is likely to increase market volatility.
Next week
Next week’s sales will occur over two days, with 48,930 bales currently rostered for sale. This will test the market rally, with early reports suggesting the rally this week may be too strong. Some form of correction is likely coming next week.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: AWEX, AWI, Mecardo
Categories
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Merino wool price cycles
Merino (and crossbred) wool prices appear to be working through the bottom of a price cycle, driven by weak economic conditions in Europe and China
Supply pressure spooks sellers
It can be difficult to see the forest for the trees at times, particularly when the details have presented the best opportunities for wool sellers
The market continues positive start to 2025
This week’s market continued to show stronger prices despite the increased bales on offer as sellers responded to the rising market. The Eastern Market Indicator
AWTA volumes – east looks normal and the west continues to downsize
It is not hard to find doom and gloom commentary about the wool industry, which is fairly typical of the wool and sheep industries swinging
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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.