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-S46
Week S46: 14/05/2025: The AWEX EMI closed on 1189c, down 2c at auction sales in Australia this week. A combination of a more stable exchange rate within the selling week, coupled with a smaller offering of 30,931 bales contributed to the levelling of the EMI this week. 91.1% of the offering was cleared with competition dominated by two of China's largest Merino Top makers, who purchased over 38% of merino fleece offering. The large Australian based Trading Exporters are reporting difficulty in doing any substantial business and remained cautious through the week. Whilst the three selling centres performed quite differently the Merino MPG price disparity between Northern and Southern centres closed substantially.
Merino Fleece
remained fragile unless the specifications were within range of the Chinese standard specifications. In addition, superior style and specified lots suitable for Italian orders remained in keen demand and they also maintained their previous weeks price basis. Nationally Style 4 Fleece type has fallen to 23.5% of the offering, and the low style low yielding (drought affected) lots remain difficult to quote week on week. This week two of China’s largest top makers took most of these poor-style low yielding lots at varying discounts to the lots in the MPG baskets. Historically May is the low point in the calendar for Style however with the southern part of NSW, Victoria, South Australia and Western Australia all in a dry autumn period and looking for rain, I cannot see the style and quality of the national offering recovering in the near future.
Merino Skirtings
attracted good demand and experienced a better opening, with Tuesdays Merino Skirts rising by 5c to 10c and maintaining this price level through to Wednesdays close. Like the fleece the best specified and length lots attracted good support and price premiums throughout the week.
Merino Cardings
softened by 3c on both days in the northern markets whilst Melbourne accrued a 29c fall for the week. there was noticeable price pressure on low yielding High VM Locks and Crutchings in Melbourne this week.
Crossbred Fleece
Crossbred Oddments
Crossbreds
added 5c to 15c across the eastern seaboard and like the skirtings they moved against a strong currency exchange.
Next Week
Next week’s offering 30,266 bales will face the same challenges. My intel is best style and Specified lots of Merino Fleece and Skirtings will remain in demand. This will also apply to the best style in Spec XB combing lots. Conversely a tough time will continue for anything outside standard the specifications for the Chinese Topmakers. ~ Marty Moses.
Graphs
Market Commentary
This week China and US talks resulted in an 90-day pause to the trade tariff arm wrestle between the two nations. In summary tariffs on Chinese goods will be cut from 145% to 30% – initially for a 90-day period and in return, China has cut its own tariffs on US imports to 10%, from the 125% it had imposed in retaliation against the White House. The statement hailed from the White House was “focussed on the importance of a sustainable, long-term and mutually beneficial economic and trade relationship”. The language was rather different to Trump’s Liberation Day speech, about the US being “looted, pillaged, raped and plundered” by nations near and far. Whilst this announcement alone did not create new demand for wool the news may has given the Topmakers some hope that demand will pick up in the future, and posed the question if they should start gathering some stock as a price risk management tool. Another point of view being circulated is the risk of another unscheduled change from either side of this discussion. Despite the lower wool bale volumes being offered, there is still substantial financial pain being felt along the wool processing pipeline. My sources reveal that there is a risk that some Scouring and Topmaking plants may decide to close their doors temporarily, rather than process stock they may not be able to sell. It seems that nobody is enjoying this period of waiting for the USA to negotiate their new trading rules with the rest of the world. The 94th IWTO Congress will be held on the 20-22nd May (Next Tuesday -Thursday) in the historic textile city of Lille France. I will be attending most of the sessions via teleconference searching for any positive news for our exquisite fibre.