Market Intelligence
Weekly Wool Market Commentary
Moses & Son is committed to providing our valued customers the most current information and data to empower your decision-making process. Discover our latest Australian wool market weekly update below, along with archived reports for your perusal and analysis.
2024-S23
The AWEX EMI closed on 1142c, down 2c at auction sales in Australia this week. 38,425 bales went under the hammer in all selling centres with 90.7% cleared to the trade. The Early market intel was for a positive trading environment this week and the market opened with moderate strength. Unfortunately, most of the price gains measured on Tuesday were reversed on Wednesday as Chinese interest turned to a more cautious approach, once again. Additionally, the AUD continued its weaker exchange rate relationship with the USD with the EMI in US fell 7c to 734c. Competition was widespread this week however the large Australian Owned Trading Exporters dominated every market sector with good support from the Chinese Indent operators and the Large Chinese Topmakers.
Merino Fleece
Merino Fleece held their ground or slightly increased their respective MPGs on Tuesday rising up to 11c. The only exception to this was the 18 MPG which fell 5c in Sydney and 1c in Melbourne. Wednesday saw a reversal of prices more noticeable in the 17.5 which fell 10c whilst the 18 MPG fell another 11c. The pullback from exporter confidence may have been attributed to a continuation of poor economic news emanating from Chinese sources and the inability to sell at current prices into the new year despite the lower volumes on offer YOY.
Merino Skirtings
Merino Skirtings generally experienced a slightly tougher week with the best prepared FNF well specified lots least affected. Skirtings were noticeably starting to show signs of the current season commencement of grass seed in the skirtings and being discounted accordingly.
Merino Cardings
Merino Cardings remain fully firm in the Northern region however the Southern MC offering attracted an 18c rise. Crossbred oddments are generally becoming easier to sell week on week.
Crossbred Fleece
Crossbred Oddments
Crossbreds
Crossbred were once again operating in two opposing directions. 25-26µ continued to fall whilst the 27-32µ MPG’s held firm or were slightly dearer. Interestingly all the XB MPGs are higher than the same time last year, but not by much.
Next Week
Market Commentary
With 2 weeks left on the Australian Wool Sale calendar it seems the mood is still one of caution. Bales offered Year on year are down 156676 bales or 19.1%. When expressed in Clean Kgs its 19.9%. The total value of wool sold YTD is $835m and at the same time last year we had sold $1025m down $190m or a reduction of 18.5%. AWI’s Scott Carmody reports the Zhangjiagang Wool Industrial Association (ZWIA) held its wool conference last weekend. Zhangjiagang is by far the largest wool processing City globally. The demand signals emanating from the delegates was downbeat, pointing out that both the Chinese domestic and their export markets destinations remain depressed. They were also reaffirming that the Chinese manufacturing sector remains faithful to Australian wool. Next week’s offering increases slightly to 39,896 bales, and the early market intelligence (unfortunately) clearly pointing to a continuation to a slightly cheaper market. ~ Marty Moses.