The wool market found renewed life this week, with the Eastern Market Indicator (EMI) lifting 6¢ to 1419¢/kg, while in US dollar terms it slipped 9¢ to 924¢/kg. The stronger Australian dollar was the main factor behind the divergence, firming to US65¢ after Federal Reserve Chair Jerome Powell downplayed expectations of a December rate cut, strengthening the greenback.
A national offering of 30,137 bales went under the hammer, down 3,400 on last week, leading to a total of 28,312 bales sold. The national pass-in rate eased to 6.1%, returning to single digits for the first time in a month.
On the east coast, Sydney and Melbourne both recorded mostly positive results, supported by steady buyer demand for high-quality Merino types. In Sydney, the 18MPG lifted 37¢ to 1887¢, the 19MPG rose 19¢ to 1732¢, and the 19.5MPG gained 26¢ to 1696¢. In Melbourne, the 18MPG fell 3¢ to 1863¢, while the 18.5MPG finished at 1796¢, the 19MPG rose 17¢ to 1733¢, and the 19.5MPG rose 8¢ to 1680¢. Crossbreds were mixed in the south, with the 28MPG up 2¢ to 655¢ and the 30MPG up 5¢ to 567¢, while oddments remained subdued as low-VM crutchings firmed slightly but locks continued to soften.
In the west, Fremantle recorded modest gains amid a smaller selection, with the 18MPG up 12¢ to 1867¢ and the 19MPG up 10¢ to 1734¢, while broader microns also improved slightly. The Western Merino Carding Indicator edged 2¢ lower to 751¢.
This week in Mecardo, Andrew Woods analysed the Australian wool supply (see article here). He found that AWTA core test volumes were 18% lower year-on-year for the three months to September. He noted that October showed a rebound, rising 5.5% on the same month in 2024 as higher prices encouraged stored wool to re-enter the market. Interestingly, he observed that the western clip has broadened under improved seasonal conditions, while the eastern clip remains finer.
Next week
Next week’s national offering is forecast at 32,867 bales, comprising 4,991 in Fremantle, 17,656 in Melbourne and 10,220 in Sydney. Fremantle will sell on Tuesday only, while Sydney and Melbourne will sell on Tuesday and Wednesday.
The mention of an El Nino has the scribes seeking forecasts and projections for agricultural commodities through production to price. This article takes a look
The main southern hemisphere wool exporters (from west to east; South Africa, Australia, New Zealand, Argentina and Uruguay) are by default the major suppliers of
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
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.
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.
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.
Wool finds relief after a long month
Next week
Next week’s national offering is forecast at 32,867 bales, comprising 4,991 in Fremantle, 17,656 in Melbourne and 10,220 in Sydney. Fremantle will sell on Tuesday only, while Sydney and Melbourne will sell on Tuesday and Wednesday.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: AWEX, AWI, Mecardo
Categories
Have any questions or comments?
Another look at the implications of an El Nino on rainfall
The mention of an El Nino has the scribes seeking forecasts and projections for agricultural commodities through production to price. This article takes a look
A look at southern hemisphere merino wool production
The main southern hemisphere wool exporters (from west to east; South Africa, Australia, New Zealand, Argentina and Uruguay) are by default the major suppliers of
Will a rising Australian dollar impact commodity prices?
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
Market momentum persists ahead of Chinese New Year
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
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.