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-S45
The AWEX EMI closed on 1886c down 11c at auction sales in Australia this week. The EMI had it’s 1st fall since early April however, the EMI in USD terms continued to rise adding 15c to close on 1367c. This is the highest EMI in USD terms in exactly 7 years.
33,055 bales were offered this week in all selling centres, the selection was described as a “liquorice all sorts” with exporters reporting an increase in quantity of impersonal wools (Bulk class and interlot) contributing to the wide variety of styles, lengths, and specifications. That aside the clearance rate was similar to last week at 92.7% with the exporter competition focused on the best style and specified lots with a particular focus on better yields and low VM lots. The 1.2c rise in the AUD – USD exchange rate may have been equally influential with the US and Iran negotiations earlier in the week focusing on a new peace plan that could bring an end to the 10-week conflict in the Middle East. As we have learned to expect with the middle east conflict, the mood changed dramatically as the week progressed.
Merino Fleece
Merino Fleece opened the week with buyers focussing on the superior technical specs that influence processing efficiency (NKT & CVH). The Superfine MPG’s performed the best in Sydney due to theselection, whilst similar lots in Melbourne attracted less competition. Thepassed-in rate for day one for fleece was 6.6%.
Wednesday saw a sharp rise in the AUD, which in turn started to impact prices, which were reflected in the Merino MPG’s. All MPG’s gave back 5c to 20c with the exception of the 19 MPG. Whilst buyers’ competition seemed somewhat subdued this week compared to previous weeks, the competition on best style and specified lots did not wane. Buyer support for Merino prem shorn lots were heavily dependent on the length and yield specifications, with discounts more pronounced this week. The pass in rate for the fleece sector on Wednesday grew to 14.2%.
Merino Skirtings
Merino Skirtings continued to perform in positive price territory on Tuesday in Sydney adding 10-15c on most types, whilst at the same time Melbourne opened fully firm with select lots slightly dearer. Both centres saw the market remain generally firm on Wednesday. Demand for the Merino Skirtings sector has primarily been driven by the Chinese domestic knitwear production for their Spring requirements. With the reduced offeringsbecoming more likely as we enter the winter months, supply will remain a keyfocus for this market segment for the short term.
Merino Cardings
Merino Cardings also traded into positive price territory across all selling centres. Sydney added 20c, Melbourne was up 4c whilst Fremantle reversed their previous negative weekly trend with a +30c rise for the week. Whilst Locks started the week slightly dearer prices levelled out on by the close. Crutchings on the other hand opened fully firm in Sydney and by Wednesday the better bulk and colour crutchings at times extreme.
Crossbred Fleece
Crossbred Oddments
Crossbreds
Crossbreds defied the slightly weaker Merino price trend this week adding solid rises to the 25-26 MPG’s adding between 22c-28c respectively. Lots in this category low Coefficient of Variation in Fibre Diameter (CVD) were in keen demand and short supply. The 28-32 MPG prices remained fully firm to slightly dearer as the offerings are noticeably getting less and less.
Next Week
Next week’s offering is expected to be 31,329 bales on offer in Sydney, Melbourne on Tuesday and Wednesday and Fremantle will offer on Tuesday only. With this week’s reports of some emerging resistance to further USD price increases from Chinese processors on the Merino Fleece and Skirting sectors, whilst it is always difficult to predict what might happen next week at the time of penning the report the call is cheaper for Merino Fleece and Skirtings. Crossbreds will be dependent on the CVD as mentioned above and Cardings may still have some upside in the short term.
Happy Mother’s Day for Sunday for all of those wonderful Mothers in heaven and on still on earth from the Wool Industry:- Thank you for raising both your flock and your family with so much love, patience, and care. You make the world warmer in every way.
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