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.
2025-S21
The AWEX EMI closed on 1,514c up 56c at auction sales this week. With the EMI’s previous rise of 39c still fresh in our minds, this week commenced with the USD AUD foreign exchange rate rapidly weakening which would have possibly aided the purchasing for forward sold contracts. Another pressure point could have been the narrowing of the prompt pre-Christmas shipping deadline which at times can impact exporters’ urgency to purchase. Whilst all MPG’s sold into positive territory it was the Merino MPG’s that enjoyed the best results.
From the 31,796 bales offered 96.4%cleared to the trade with buyer competition widespread with a visible keenness in the sale rooms indicating participants were willing to pay whatever it took to fill their orders from the 31,796-bale offering.
Merino Fleece
The Sydney fleece selection got off to a stellar start with the 16.5-19.5 MPG’s adding 67-105c on Tuesday. This was well in excess of the early market intel which predicted a 20-25c increase. Melbourne’s results on Tuesday were not quite as volatile adding 40-80c in the same MPG’s. Wednesday’s experience backed up Tuesday’s price increases, with results confirming Tuesday’s result sand in the 18.5 and finer MPG’s measured price increases of 3-26c. Dominant buyers in the fleece were the large Australian based export houses and Chinese indent operators.
Merino Skirtings
Tuesday’s Sydney selection added up to 50c whilst Wednesday’s offering consolidated these rises. Melbourne added 20-30c on Tuesday and was generally firm on Wednesday.
Merino Cardings
The oddments remained well supported with prices firm for the week. Sydney measured no change in the MC whilst Melbourne added 3c and Fremantle added 5c.
Crossbred Fleece
Crossbred Oddments
Crossbreds
As we move into the seasonal peak of Crossbred supply, Crossbreds represented 22%of the total offering this week, however the increase in volume did not dampen the enthusiasm in the sale rooms with Sydney adding 7c for the 26 MPG and 22cto the 28 MPG. Melbourne’s much larger XB offering managed to add 2c to 17cacross the XB MPG’s and as experienced in Sydney the 28 MPG was the best performer.
Next Week
Next week the national offering increases to 40,408 bales with all centres offering on Tuesday and Wednesday. Whilst the Northern offering bale numbers remains steady on this week, the bales numbers in the Melbourne Centre increase by 31%and Western Australia volumes are increasing by a whopping 112%. I am almost certain this is “held” wool attracted onto the market from this week’s performance. ~ Marty Moses
Graphs
Market Commentary
If you follow market trends you may be asking if the “second wave” is the real deal. Whilst (in hindsight) the September price spike was more than likely driven by the emotion surrounding low supply or available wool, and the price retracement experienced in October was the response from the sellers who began reaching into the on-farm or broker stored inventory and supplementing the fresh wool offerings to capture the new improved price convention. Whilst it is early days the “second wave” price spike may be driven by new demand or is it in response to the more recent string of 30,000 bale offerings. Only time will tell. Some points to consider – one positive market result does not constitute a trend.
Whilst the wool market carries some negativity over recent times we are seeing some emerging improvements in the price of some wool sectors. The 19 MPG sits at the100th price percentile and 21, 28 & 30 MPG’s are all at the99th percentile (southern MPG’s 5-years). On the flip side the17 MPG sits at the 55th percentile and Merino Cardings at the38th percentile depicting some room for improvement.