The wool market notched its eighth consecutive weekly rise, with the Eastern Market Indicator (EMI) lifting 28¢ to 1319¢/kg clean. This takes the EMI to its highest level since March 2023 and 20% higher than the same time last year. A total of 26,828 bales were sold nationally, with the pass-in rate falling to 2.6%, the lowest since October 2024.
Strong demand pushed 17 micron wool higher, gaining 69¢ in Sydney to 1847¢/kg and 57¢ in Melbourne to 1825¢/kg. 18 micron wool gained 33–34¢, closing at 1728¢ in Sydney and 1744¢ in Melbourne. 20 micron wool in both Melbourne and Fremantle improved 50–51¢ to 1571¢/kg, while Sydney closed at 1561¢/kg.
Crossbred fleece also improved, with the 28 micron indicator in Melbourne rising 14¢ to 572¢/kg and the 30 micron up 11¢ to 498¢/kg, extending a steady twelve-month recovery from multi-year lows. Cardings gained 8 to 23¢ across the centres, finishing at 790¢/kg in Sydney, 750¢/kg in Melbourne and 812¢/kg in Fremantle.
The market improved this week largely on the back of another modest offering, with volumes again below 30,000 bales. The dry conditions seen this year in key sheep regions is contributing to lower supply, which is providing support for prices at current demand levels.
It is worth noting that the Australian dollar was among the best performers against the US dollar this week, with the AUD/USD pair reaching 0.6660 for the first time since November 2024. This came as US inflation in August rose 2.9% year on year, slightly above July’s figure, giving mixed signals for the Fed, neither a dramatic slowdown nor runaway inflation. The firmer currency tempered some of the market’s gains when measured in USD, though the EMI still closed higher in both currencies.
This week in Mecardo, Andrew Woods reviewed how the volumes sold under quality systems (non-mulesed, RWS etc.) held up over the 2024 25 season despite tight supply and challenging seasonal conditions (see article here). He noted the fall in overall AWTA tested and auctioned volumes, with the total down 8% year on year.
The week ahead….
Next week, 30,992 bales are rostered for sale, with Sydney offering on Tuesday, and Melbourne and Fremantle selling across Tuesday and Wednesday.
Wool quality varies in response to changing seasonal conditions which is one of the challenges wool processors have to cope with. Quality usually has a
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Wool keeps on climbing
Strong demand pushed 17 micron wool higher, gaining 69¢ in Sydney to 1847¢/kg and 57¢ in Melbourne to 1825¢/kg. 18 micron wool gained 33–34¢, closing at 1728¢ in Sydney and 1744¢ in Melbourne. 20 micron wool in both Melbourne and Fremantle improved 50–51¢ to 1571¢/kg, while Sydney closed at 1561¢/kg.
Crossbred fleece also improved, with the 28 micron indicator in Melbourne rising 14¢ to 572¢/kg and the 30 micron up 11¢ to 498¢/kg, extending a steady twelve-month recovery from multi-year lows. Cardings gained 8 to 23¢ across the centres, finishing at 790¢/kg in Sydney, 750¢/kg in Melbourne and 812¢/kg in Fremantle.
The market improved this week largely on the back of another modest offering, with volumes again below 30,000 bales. The dry conditions seen this year in key sheep regions is contributing to lower supply, which is providing support for prices at current demand levels.
It is worth noting that the Australian dollar was among the best performers against the US dollar this week, with the AUD/USD pair reaching 0.6660 for the first time since November 2024. This came as US inflation in August rose 2.9% year on year, slightly above July’s figure, giving mixed signals for the Fed, neither a dramatic slowdown nor runaway inflation. The firmer currency tempered some of the market’s gains when measured in USD, though the EMI still closed higher in both currencies.
This week in Mecardo, Andrew Woods reviewed how the volumes sold under quality systems (non-mulesed, RWS etc.) held up over the 2024 25 season despite tight supply and challenging seasonal conditions (see article here). He noted the fall in overall AWTA tested and auctioned volumes, with the total down 8% year on year.
The week ahead….
Next week, 30,992 bales are rostered for sale, with Sydney offering on Tuesday, and Melbourne and Fremantle selling across Tuesday and Wednesday.
Have any questions or comments?
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Data sources: AWEX, Nutrien Ag Solutions, AWI, Mecardo
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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.
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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.