Wool market climbs for fourth consecutive week

This week, the national offering reached 40,144 bales, with 37,328 sold and a pass-in rate of 7.0%, which fell in line with the seasonal average. This was driven by a 12.4% pass-in rate in Fremantle

Fine Merino wool saw mixed results. In Sydney, the 17.5-micron Price Guide (MPG) fell 21¢ to 1,687¢/kg, while the Northern Market Indicator (NMI) still edged up 6¢ to 1,285¢/kg. Similarly, broader Merino fleece (19MPG+) held firm. In Melbourne, the 18-micron was the standout, rising 14¢ to 1,648¢/kg, lifting the Southern Market Indicator (SMI) 8¢ to 1,226¢/kg. Fremantle’s Western Market Indicator (WMI) increased 1¢ to 1,407¢/kg, driven by gains of up to 13¢ in the 21-micron fleece category. However, all other categories in the west saw significant declines, with 18-micron wool falling the most, down 21¢. This drop was likely driven by an unexpected increase in supply (9,078 vs the forecasted 8,788), the highest offering of the year, and season highs seen last week, all potentially contributing to downward pressure on prices

The crossbred sector was mixed. The 26-micron MPG in Sydney fell by 13¢ to 602¢, while the same category in Melbourne grew by 13¢ to 612¢. Equally, the 28-micron MPG in Sydney softened by 5¢ to 425¢/kg. Merino skirtings remained in demand, particularly broken fleece with 4-6% VM, which saw price increases of up to 20¢ in Melbourne. Merino cardings continued to show stability, with Sydney unchanged at 739¢/kg, Melbourne easing 2¢ to 743¢/kg, and Fremantle up 7¢ to 766¢/kg.

Andrew Woods reported this week in Mecardo (see article here) that the RWS-accredited wool premiums have strengthened this season after a slow 2023-24. He showed how RWS-certified Merino fleece is attracting 5-9% premiums, while non-accredited, non-mulesed wool is seeing minimal price difference compared to declared mulesed or pain-relief-treated wood.