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-S13
The AWEX EMI closed on 1087c, down 11c at auction sales in Australia this week. 91.1% of the 31,062 bales were cleared to the buyers with the PI rates almost doubling from Tuesday to Wednesday. The obvious influencers of the wool market movement this week started with the strengthening AUD against the USD. The 1.8% rise in the currency exchange which is now hovering on or just below .69usc its highest level since Feb 2023. The EMI expressed in USD closed the week on 749c up 6c for the week. The market sentiment was somewhat negative entering this week’s sale however Tuesday’s market opened relatively unchanged in the finer Merino Fleece types. Any price resilience evaporated after the first hour of selling with the EMI down 2c closing on its first day of selling.
Merino Fleece
Merino Fleece resisted the downward gravitational pull the unfavourable exchange rate for about the first hour of selling. As the unfavourable currency exchanged progressively worsened, prices for Tuesdays offering fell away. The end of day MPGs measured well for the 17.0µ-17.5µ which held firm with the remaining generally 5-15c cheaper by the close. Wednesday saw a continuation of the pressure felt from the previous market weakness with many of the exporters pulling their limits back as the AUD headed for 79 USC. The result for merino MPG’s was another drop 15-25c and with the pass in rate for Wednesday climbing to 12.3% after Tuesdays Pass in rate of just 6.7%. The main buyer activity came from the large Chinese Top makers and large Australian based Trading Exporters.
Merino Skirtings
Merino Skirtings opened with a solid price base with strong competition on the better end of the Skirting specs. These prices continued into Wednesday for the better specified lots. For lots outside these specifications market closed on Wednesday around 5-10c cheaper.
Merino Cardings
Merino Cardings showed more direction this week as reports of new business being written for the carding (carbonising) types. Whilst the Northern market MC held firm, the southern and western posted a 16c rise in their MC. I may be jumping at shadows but this maybe the start of better times for the carbo sector.
Crossbred Fleece
Crossbred Oddments
Crossbreds
Crossbred Combing wool continued to maintain prices on, or within a few cents of last week’s levels. Wednesday saw some price degradation in Melbourne for the 28-30 MPG’s whilst Sydney’s Crossbred offering held their price levels.
Next Week
Next week the national offering climbs slightly to 33,949 bales, with all Australian selling centres operating on Tuesday, however Fremantle once again sitting out of the market on Wednesday. The early market intelligence indicates the wool market should hold firm for next week. ~ Marty Moses.
Market Commentary
All roads led to Puyuan, Zhejiang China for a number of the Australian Exporter staff and agents this week, where the 35th edition of the annual Nanjing Wool Market conference was held. It is customary that the intent of the attendees to execute some forward business at this conference, however, the early indications have been selling Merino Fleece at the current USD prices was almost impossible. Conversely the Merino Skirtings and Merino Carbonising sectors, the discussions may have been more fruitful.
In other news emerging from China this week was the Peoples Bank of China (PBoB) surprise announcement of a stimulus package aimed at spurring consumer spending. The package has a number of features squarely aimed at countering China’s persistent deflation and aid China to achieve the goal of achieving a 5% GDP.