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-S03
The AWEX EMI closed on 1107c, measuring no change at auction sales in Australia this week. The substantially reduced weekly offering of 27,519 bales was primarily due to Fremantle sitting off the roster this week. The market intelligence heading into the week signalled increasing frustration for sellers with a slightly stronger exchange rate and reports of little or no new business being written at the end of last week. Mondays presale news has some positive vibes on the merino skirting sector as well as the open tops (prem shorn) merinos.
Subsequently, the EMI opened weaker and had posted a 3c loss at Tuesday sale cessation, the 9th successive selling day loss in the EMI. Wednesday experience was one of refreshed vigour in the bidding which saw the EMI close up the 3c it had lost on the previous day. With a clearance rate of 89.2% on Tuesday climbing to 94.4% for Wednesday the total for the week was 91.7%.
Merino Fleece
Merino Fleece measured solid falls in the 18.5 MPG and coarser on Tuesday, with 16.5-18.0 firm to slightly dearer. Competition came from the two largest Chinese Top Makers who bought almost 40% of the merino fleece offering. Wednesday quickly shook off the negativity of the first day sales series posting solid gains across most merino MPG’s. In many cases above the closing levels of last week. Wednesday’s competition was dominated by the indent operators. Traders and exporters are still battling with limited demand and forward orders into the spring.
Merino Skirtings
Merino Skirtings have been generally unaffected by the pressures that have been experienced in the Merino Fleece sector. Demand for skirtings mainly for the knitwear markets has been generally in conflict with their fleece counterparts. In saying this Tuesdays quotes the skirtings were irregular tending slightly cheaper, whilst Wednesdays quotes were irregular tending slightly dearer.
Merino Cardings
Merino Cardings had another uneventful week in Sydney whilst it was a much tougher week in Melbourne where the MC fell 13c.
Crossbred Fleece
Crossbred Oddments
Crossbreds
Crossbreds held their levels on Tuesday before posting a 10- 20c on Wednesday. Whilst the demand for XB has been generally weak the weekly offerings of suitable length and style XB wools with tight CVD of (Coefficient of Fibre Diameter) specs have been diminishing and the price has somehow maintained a relatively flat and low-price trajectory.
Next Week
Market Commentary
I attended wool week in Melbourne this week. All Industry sectors have reported a tough year, and maybe one of the toughest for exporters. As a Broker and Wool producer, I feel we have all experienced the pressure of tighter margins caused by the lower price base and increasing operational costs.
Our market intelligence agencies are starting to measure some changes in consumer demand that should produce and increase in demand for natural and sustainable fibres, which wool has is increasingly strengthening its properties. The 64millon question is when?? When will the price of merino and XB wool recover, and will wool producers hang in there that long. There are so many economic negatives around the world at the moment, it’s hard to see a sustained recovery in the next 6 months without some good news stories starting to emerge.
Fremantle returns to next weeks’ sale roster, where 33,564 bales will be offered. Next week signals the last sale opportunity before the three-week sale recess. ~ Marty Moses.