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-S22
The AWEX EMI closed on 1144c up 7c at auction sales in Australia this week. 94.5% of the 33,366-bale offering cleared to the trade, with most merino fleece lots the beneficiary of a slightly higher price basis derived from the weaker AUD – USD exchange rate. In US $ terms the AUD fell 1 US c. Whilst this week’s sale signalled last wool sale in November, the reality for the trade is the Australian wool market has just three sales to complete before the three-week recess in sale.
Merino Fleece
Merino Fleece experienced slightly improved exporter competition which resulted in firm prices driven by Sydney’s super-fine sale status. Noticeable competitive tension in the rooms was experienced, specifically, on the best specified Ultra and Superfine lots. China largest Top maker returned to the top of the Merino Fleece buyers list just inching out Australia’s largest export operator. The largest buyers also included Australian trading Houses and Chinese indent operators. The top 4Merino Fleece purchasers accounted for 57.7% of the offering.
Merino Skirtings
Merino Skirtings opened the week firm however the best specified and prepared skirtings increased in price as the week progressed. As in the fleece sector the competition dominated by Australia’s 2 largest exporters early in the sale series. As the week progressed the support expanded to China’s Largest Top Maker and Chinese indents.
Merino Cardings
Merino Cardings had another consistent week. The support emanated from a wide range of operators which eventuated as no change to the Southern and Western MC, however, the Northern MC quoted as falling by 1c.
Crossbred Fleece
Crossbred Oddments
Crossbreds
Crossbred closed the week with some significant price reductions experienced in the 25-26µ and lots with a higher-than-average variation in the Fibre diameter. 27-28 opened the week with good support however there was price pull back in this sector by the end of the sales series. 29-32µ XB Fleece held last week’s price levels. Competition was varied throughout the series however two Chinese exporters increase their purchasing on Wednesday.
Next Week
Graphs
Market Commentary
Trump import tariffs were in the news again this week as he reminded us that in the next few months, potentially years, the tariffs will deliver plenty of volatility and opportunity. Trump dispelled this any optimism of a sensible delivery of his policies by saying that the US would impose tariffs on China, Mexico, and Canada, elevating concerns about his “America First” policies. Trump stated: -illegal immigration and the trade of illicit drugs were the reasons for his initial stage of tariffs. Trump said he would tax all goods from Mexico, Canada, and China by 25% plus an additional 10% for China, which he blames for flooding America with Fentanyl. Following this statement, the Canadian $ hit a4-year low, the Mexican Peso tested its 2022 low, and the $A hit a 4-month low while the Yuan only edged down. Conversely the overnight equities sector shrugged off Trump’s threats, with investors indicating his bark would prove worse than his bite, following Scott Bessent’s appointment as trumps US Treasury Secretary.
The Wool Production Forecasting meetings commence next week. I have been a part of the NSW WPFC and when formulating the 6.8% reduction in wool production for NSW in August and a 10.1% reduction for Australia, there was a sense of disbelief from sectors of the industry. With AWTA statistics and the Auction sales data strongly supporting the lower production forecast it is interesting times in the sheep and wool industry.
Next week’s offering increases to 39,580 bales. The early market intelligence is indicating a “steady as she goes” projection in the remaining three wool sale (and the sleeps) until Christmas. ~Marty Moses.