Wool market update

This week’s wool market behaved calmly, with minor movements throughout the merino sector. 

The Eastern Market Indicator (EMI) edged up 6 cents to 1419 for the week, some 25 per cent (pc) higher than the same sale last year.

The US dollar (how the majority of Australian wool is traded overseas), was marginally lower to 924, losing 9 cents due to the A$/US$ exchange movement. This was 23pc higher than the same time last year. Now in the fifth week post the recent rally, the market has retreated only slightly, a welcome relief to many wool sellers. 

Total volume offered season to date continues to run slightly behind the same time last season. Australian Wool Testing Authority (AWTA) comparative wool testing figures are running around 9pc less for the July to October period, when compared to the same period last year. 

This number has narrowed from the July to September figure, which was 16pc behind, as the October testing figure was up 5pc from the same month last year. State by state the differences vary:

• Victoria  10.7pc
• NSW  6.9pc
• S.A  15.1pc
• W.A  8.8pc
• Tas +1.1pc
• QLD  11.6pc. 

The state by state figures clearly show which state has had the best and the worst overall wool growing conditions, season to date. 

On a percentile basis the 19 to 30 MPG continue to hold at five-year highs, ranging from 91 to 98, while the book ends 17MPG sits at 49. The MC (Merino Carding) indicator is sitting low at 28, indicating low demand from this sector. 

Next week’s offering currently sits at 32,867 bales with Melbourne and Sydney selling over Tuesday and Wednesday, while Fremantle is back to a Tuesday (one day) sale.