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.
Premiums for quality assured wool, non-mulesed wool, are the bright light in the wool market at present, with feedback continuing to indicate demand in excess
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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.
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Click on graph to expand
Data sources: Mecardo, AWEX, Meat and Livestock Australia
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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.