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-S32
The AWEX EMI closed on 1,215c up 23c at auction sales in Australia this week. The weekly offering crept up slightly this week with 37,650 bales going under the hammer in all three selling centres. Clearance rates continued to be well above average with 94.4% of the offering transacted.
The market opened well on the back of the solid performance last week, with continuation of lively bidding in both rooms, which resulted in a 15c rise in the EMI by Tuesday closing. Whilst the currency exchange saw the AUD fall as low as .61usc before the market opened it soon went back to hovering either side of .62usc during the sale series. Despite the currency distraction the market kept on the upward trajectory and closed Wednesday up 8c. After last week’s Chinese New Year holiday possibly taking some competition out of the market, this week’s wool sales attracted competition from Indian mills and European exporters coupled with the relatively solid Chinese Interests. It just shows it does not take too much interest from European and Indian buying interest to push the market up.
Merino Fleece
Merino Fleece experienced increased competition as mentioned above, which added 10c-56c across the Northern and Southern MPG’s. Wednesday’s selection consisted of mainly FNF wool in the Northern region. The auction room seemed ambivalent to the fluctuating USD with the 19.0 micron and coarser posting solid weekly rises. The 17-18.5MPG’s posted smaller gains as the European interest waded through the catalogues looking for the best style and specified lots.
Merino Skirtings
Merino Skirtings followed the fleece trend upwards, with the best skirtings with Low VM, good bulk and colour commanding premiums over the average specified lots. Skirtings were generally 25-35c dearer for the week
Merino Cardings
Merino Cardings remained largely unchanged in the Northern selling centre Melbourne and Fremantle added 3 and 8c to the MC respectively.
Crossbred Fleece
Crossbred Oddments
Crossbreds
Whilst the Southern markets added moderate value to the XB MPG’s each day. Sydney experienced a substantial increase in the bales offered of 28 micron on Tuesday which saw the 28 MPG fall by 15c. The fall in Sydney may be due to a weighting of lots being sold that have a high coefficient of fibre diameter, which may limit their inclusion in the higher price level types.
Next Week
Graphs
Market Commentary
The major price guides are currently testing resistance levels seen over the past24 months. Leading Australian-based trading exporters report difficulties in transacting meaningful volumes of new business at these higher price levels.
Looking ahead, through a rather foggy crystal ball, the market remains uncertain. However, with China, India, and Italy competing for supply, along with a lower production forecast and reduced stock levels between the farm gate and the Topmaker, there may be some short-term price support.
Next week, 41,243 bales are rostered for sale across Sydney, Melbourne, and Fremantle on Tuesday and Wednesday. ~ Marty Moses