The wool markets' momentum continued this week as the positive tone was extended, leading to the Eastern Market Indicator (EMI) increasing 17¢ to 1,242¢/kg. Renewed demand at the Northern sale and a steady Australian dollar outweighed the impact of a 5,648-bale supply increase, keeping the rally alive.
Sydney kicked off on a positive note, with buyers showing firmer interest in fine Merino categories. The 17.5-micron Price Guide (MPG) in the North surged 33¢ to 1,708¢/kg. This strength drove the Northern Market Indicator (NMI) up 18¢ to 1,279¢/kg, reflecting fine wool demand that’s giving the broader market a welcome nudge.
The Southern Market Indicator (SMI) followed suit, rising 17¢ to 1,218¢/kg, with most Merino MPGs posting double-digit gains. The 18-micron MPG in Melbourne added 27¢ to hit 1,634¢/kg, reflecting steady demand for mid-range microns. Over in the West, the Western Market Indicator (WMI) jumped 12¢ to 1,406¢/kg, with all categories improving between 14¢ and 25¢.
However, some consolidation was seen in the crossbred category. The 26-micron MPG in Sydney eked out a modest 23¢ gain, while the 28 MPG managed a respectable 5¢ rise to 432¢/kg, the standouts in an otherwise quiet segment.
Merino cardings showed mixed results, in Sydney at 739¢/kg, up 4¢. In Melbourne up 12¢ to 745¢/kg, and a 1¢ lift in Fremantle to 759¢/kg. These steadier categories hint at a market still finding balance beyond the Merino surge.
A total of 36,604 bales were sold this week, with Northern sellers capitalising on the upbeat tone. The national pass-in rate increased to 4.3%, largely driven by higher pass-in rates on the West Coast (7%).
Andrew Woods investigated the changes to shearing costs, beer, and wool prices in the last few seasons for Mecardo this week (Read more here). A 50% cost surge between 2018 and 2022 amid a cyclical wool price downturn has resulted in driving the full shearing cost-to-Merino fleece price ratio to 87% (well above the 50-55% eight-year rolling average).
The week ahead….
With 41,064 bales slated for auction, it remains to be seen if the momentum will continue but the EMI’s recent climbs have occurred despite some incremental supply gains.
All three centres return to a Tuesday and Wednesday selling schedule.
The Australian wool market saw a modest rise this week with the Eastern Market Indicator (EMI) increasing 16¢ to 1783¢, driven primarily by a increased
Synthetic fibres rely heavily (like most supply chains) on Oil, and the conflict in the Middle East presents a number of challenges for agricultural markets,
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
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’s winning streak continues
Sydney kicked off on a positive note, with buyers showing firmer interest in fine Merino categories. The 17.5-micron Price Guide (MPG) in the North surged 33¢ to 1,708¢/kg. This strength drove the Northern Market Indicator (NMI) up 18¢ to 1,279¢/kg, reflecting fine wool demand that’s giving the broader market a welcome nudge.
The Southern Market Indicator (SMI) followed suit, rising 17¢ to 1,218¢/kg, with most Merino MPGs posting double-digit gains. The 18-micron MPG in Melbourne added 27¢ to hit 1,634¢/kg, reflecting steady demand for mid-range microns. Over in the West, the Western Market Indicator (WMI) jumped 12¢ to 1,406¢/kg, with all categories improving between 14¢ and 25¢.
However, some consolidation was seen in the crossbred category. The 26-micron MPG in Sydney eked out a modest 23¢ gain, while the 28 MPG managed a respectable 5¢ rise to 432¢/kg, the standouts in an otherwise quiet segment.
Merino cardings showed mixed results, in Sydney at 739¢/kg, up 4¢. In Melbourne up 12¢ to 745¢/kg, and a 1¢ lift in Fremantle to 759¢/kg. These steadier categories hint at a market still finding balance beyond the Merino surge.
A total of 36,604 bales were sold this week, with Northern sellers capitalising on the upbeat tone. The national pass-in rate increased to 4.3%, largely driven by higher pass-in rates on the West Coast (7%).
Andrew Woods investigated the changes to shearing costs, beer, and wool prices in the last few seasons for Mecardo this week (Read more here). A 50% cost surge between 2018 and 2022 amid a cyclical wool price downturn has resulted in driving the full shearing cost-to-Merino fleece price ratio to 87% (well above the 50-55% eight-year rolling average).
The week ahead….
With 41,064 bales slated for auction, it remains to be seen if the momentum will continue but the EMI’s recent climbs have occurred despite some incremental supply gains.
All three centres return to a Tuesday and Wednesday selling schedule.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: Mecardo, AWEX, Meat and Livestock Australia
Categories
Have any questions or comments?
Higher supply raises pass in rates
The Australian wool market saw a modest rise this week with the Eastern Market Indicator (EMI) increasing 16¢ to 1783¢, driven primarily by a increased
Potential for wool to follow synthetics higher?
Synthetic fibres rely heavily (like most supply chains) on Oil, and the conflict in the Middle East presents a number of challenges for agricultural markets,
Return to normal volumes boost prices
The Wool market rose again this week by 51¢ taking the EMI to 1767¢. Supply this week was lower after the previous weeks return sale
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
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.