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-S25
The AWEX EMI closes on 1154c up 14c at auction sales in Australia this week. The EMI in USD added 3c to last week’s levels. Whilst the foreign exchange rate held relatively firm over the sale days. Post-sale, the currency exchange movement got interesting as the US fed announced a delay in further interest cuts and the AUD resumed its negative trajectory all the way down to 62usc. Sellers reacted positively to the positive tone in the sale rooms selling 94% of the 34,881 bales offered this week, which was the final sale for 2024. Whilst the rise in the sale before a break is historically not unusual, this year the market intelligence leading into the week expected a slightly weaker market for the closing sale. That emotion changed 180 degrees from last Thursday to this Monday where a more positive tone emerged, converting the early apprehension into two dearer selling days in all centres.
Merino Fleece
Merino Fleece prices appreciated by a healthy 20 to 30c clean as exporters were keen to complete orders for January shipment before the break rather than wait unto the market opened on the 14th January 2025. The week produced some more substantial price rises which extended to as much as 80c on individual suitable lots. China’s large Topmaker topped the buying list in the Merino Fleece followed by the large Australian based Trading exporters. The trading companies opened the week in on top of the buyers list however the Chinese Topmaker stepped up their buying activity towards the close of selling.
Merino Skirtings
Merino Cardings
Merino Cardings held their prices well with the MC adding 1c in both Sydney and Melbourne. Fremantle MC poster a rise of 11c outperforming the Eastern states for the past two sales where it has pasted a consolidated rise of 26c whilst there has been little or no change in the eastern states.
Crossbred Fleece
Crossbred Oddments
Crossbreds
Crossbreds were generally unchanged for 29-32µ but slightly cheaper in the 26-28 MPG sector range especially in the northern region. Competition came from a wide range of Chinese and Australian based Trading exporters.
Next Week
Graphs
Market Commentary
In a rare instance of industry collaboration, most brokers extended their prompt to exporters to ensure full competition for the wool sold, as this week fell during a period that did not allow exporters to purchase, pay for, and move the wool before the end of December.
Normally it’s a bit of fun to list the statistics for the season just past.
The EMI opened 2024 at 1,213c and closed the year on 1,154c, 59c lower, a reduction of 4.9%. In US dollar terms, the EMI started the year at 816 USc, falling to730USc, 86USc, or -10.5%.
There were exactly 100 selling days for the year (the smallest number of selling days since 2020). On 44 days the EMI recorded a rise, on 4 occasions the EMI was unchanged, and the EMI dropped 52 times across the year.
The longest upward run was 6 selling days, the longest run of negative selling days was 9.
A total of 1,726,442 bales have been offered through auction in 2024, marking the lowest volume since 2020, when 1,463,112 bales were offered for the year
The latest Australian Wool Production Forecasting Committee’s forecast of shorn wool production for 2024/25 is 279.4 Mkg greasy, a 12.0% decrease on the2023/24 forecast.
• The number of sheep shorn is forecast at63.2 million, -11.7%.
• Shorn wool production is expected to decrease in all states.
• Average cut per head is expected to be comparable with 2023/24 at 4.42 kg greasy, - 0.5%.
Sales now head into the annual three-week Christmas recess and will not resume until the 14th of January. The Moses & Son Staff & Management wish all of our customers and clients a very Merry Christmas and a Happy New Year. ~ Marty Moses.