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-S17
The AWEX EMI closed on1131c, down 7c at auction sales in Australia this week. The offering returned to a more manageable 34,460 bales after the previous week’s offering creeping over 40,000 the largest in the past 3 months. Whilst Merino fleece prices were generally 10-20c cheaper, 92% of the offering was cleared to the trade and the largest pass in rate was in the Merino Fleece rooms in the Eastern states. The AUD - USD Forex rate remained relatively stable this week, which meant that in US terms the EMI fell also 7c to close on 755c.
Exporters reported steady demand early in the week, however more subdued price expectations are emerging from our largest export destination, China. It seems like the wool market’s recent positive performance may have been a sugar hit as a result of the gradual release of stimulus measures from the PBoC and the Chinese Government. As this week progressed, I understand very limited forward sales were made for November delivery.
Merino Fleece
Merino Fleece was the worst hit category with price reductions in the northern MPG’s falling between 15-38c in the Northern Region. The exception was the 20MPG which rose by 4c for the week. Whilst the other selling centres measured changes of 4-19c the MPGs were adjusting from the northern MPG disparity accrued over the past few weeks. The renewed exporter confidence that was ignited a few weeks ago was challenged this week, however despite the lower established prices this week clearances were still healthy. Whilst purchasing was still predominantly destined for China, support from India and European interest are still subdued.
Merino Skirtings
Merino Skirtings remained hard to buy performing closer to last week’s levels than the fleece. The best prepared FNF skirtings were at time as dear if not slightly more expensive. The average skirtings holding relatively well all week.
Merino Cardings
Merino Cardings remained form in the Eastern Selling centres with the Northern MC increasing 3c to 708c and the Southern MC holding on 671c. XB oddments remain irregular, with the price gaps at time 100’s more based on their VM Length and colour. The lower offering is primarily due to the number of low value XB oddments being withheld from Auction due to the often negative returns.
Crossbred Fleece
Crossbred Oddments
Crossbreds
Crossbreds could only be described as fully firm this week with regular buyers of well specified Crossbred fleece attracting widespread competition.
Next Week
Next week offering of 41,353 bales of wool on offer. Predictions for the direction of the wool market over the next 2 months, like the US election result, and AWI’s Wool Poll, all seem difficult to predict. However, it looks like next week will continue to trend downwards, especially for Merino Fleece. ~ Marty Moses.
Graphs
Market Commentary
Market Commentary At the moment the lower weekly offerings seem the EMI’s best friend at the moment. YTD supply is travelling at 19.3% less than the same time last year and as usual the unknown is the volume being withheld from the market on farm, and in brokers warehouses, in hope of a sustained price recovery. This was highlighted by AWTA test data at the end of September indicating wool tested YTD was down 8.3%. As the results of the above mentioned Chinese stimulus package is slowly unfolding, China the rest of the world economies has a laser focus on the US Election result scheduled for the 5th of November.