Merino sheep walking out of a shed

The Australian wool market opened the first week back after the winter recess on a firmer footing, with the Eastern Market Indicator (EMI) finishing 8c higher at 1,247 c/kg. A total of 38,453 bales were sold nationally from an offering of 41,303, with just 6.9% passed in. Demand was strong across all centres, with Sydney closing at 1,281c, Melbourne at 1,225c, and Fremantle at 1,396c – all recording positive moves

Fine merino fleece led the market, with the strongest gains at the finer microns. The 17 micron indicator rose 33c in Sydney to 1,733 c/kg, while 18 micron added 17c in Melbourne to 1,650 c/kg. Crossbreds were steady to modestly firmer, with the 28 micron category improving 12c in Melbourne to 517c and 7c in Sydney to 510c. Broader merinos also found support, with 20 micron in Fremantle lifting 22c to 1,489 c/kg. Skirtings tracked fleece movements, oddments lifted slightly, and Merino cardings closed dearer in the north and in western centres, closing 12 and 3c higher respectively.

A weaker Australian dollar bolstered wool prices this week, making exports more affordable and supporting stronger bidding at auction. Since the last sale, the AUD has fallen 1.24 cents. In USD terms, however, the Eastern Market Indicator (EMI) slipped 10c to 804 c/kg, highlighting that international values remain softer. Looking ahead, market direction will hinge on stronger Chinese buying through August and whether European demand can build on recent gains.

This week in Mecardo, Andrew Woods examined how shifts in sheep numbers are influencing wool supply and market dynamics (see article here). With the national flock sitting at just 78 million head, less than half the size it was in the 1990s, he noted these structural changes will play a central role in shaping availability, quality, and pricing trends across the season and into the coming years.

Next week

Next week’s national offering drops sharply to 30,596 bales, with Sydney listing 11,891 and Melbourne 14,714 across the usual Tuesday and Wednesday schedule, while Fremantle will offer 3,991 in a single Tuesday sale. The reduced supply is expected to provide support for prices.

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Data sources: AWEX, AWI, Mecardo

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