Wool’s win streak continues to the 7th week

Shorn wool in heap in shearing shed

The wool market extended its early-season rally this week, with the EMI rising 30¢ to 1,291¢/kg clean. In US dollar terms, the benchmark added 24¢, sitting 200¢ above the same week last year. The national catalogue was just 29,594 bales, with 27,583 sold and only 2.8% passed in, highlighting strong competition in a market constrained by limited supply.

Merino fleece was firmer across all microns. The fine end added more than 20¢, with Melbourne’s 17.5 MPG lifting 45¢ to finish at 1,747¢, while Fremantle saw the 18 MPG rise 31¢ to 1,666¢ and the 18.5 MPG climb 39¢. Broader types from 19.5 through to 21 MPG also gained 20–30¢, pushing most indicators well above their five-year averages.

Crossbreds continued to build momentum, the 28 MPG lifting up to 30¢ to 546–558¢ and the 30 MPG adding as much as 37¢ to finish at 470–487¢. The standout, however, was the carding sector. All three merino carding indicators surged, rising between 15¢ and 33¢ to close at 742–789¢. The Southern MC in particular jumped 33¢, underlining demand for locks, crutchings and stains alongside the broader rise.

This is the seventh consecutive weekly rise in the EMI, with supply still the clear driver. Just 27,583 bales were sold this week, below the five-year average of 29,653 for this point in the season, and national offerings remain below 30,000 bales, which is exceptionally low for this time of year. Drought conditions, particularly in the south, are playing the biggest role in reducing availability, while high sheep meat prices are also encouraging stock to move out of wool production, and looming live export bans in WA are adding further pressure. While prices may push higher in the short term, demand remains fragile and currency moves continue to influence buyer behaviour. Still, the EMI and all MPGs are well above last year.

This week in Mecardo, Andrew Woods gave an update on the South African wool clip (see article here). At around 13% of Australia’s clip in clean terms, it remains an important indicator of global supply. He analysed how the South African clip is weighted to the broader end of the merino spectrum, in contrast to Australia’s increasingly fine-skewed production, and with more than half now RWS accredited, it has become a central source of certified wool for international buyers

Next week

Looking ahead, next week’s national catalogue is again expected to fall short of 30,000 bales, with 28,447 scheduled across the three centres. Melbourne and Sydney will sell on Tuesday and Wednesday, whilst Fremantle will offer on Tuesday

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Data sources: AWEX, AWI, Nutrien Ag Solutions, Mecardo

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