Wool market update

The wool market continued to rally this week, clocking up its eighth consecutive weekly rise.  It is the longest weekly rally in six and a half years. 

On a daily basis, the rally has now run for 14 straight sessions, the longest stretch since 2011.  Auction volumes remain tight with total offering figures sitting at 246,305 bales for the first eight auctions. This is down 8 per cent on the previous season, but still ahead of the 2019 and 2020 seasons.  

At the sale this week there was a sharp jump on the first day (24 cents) followed by more muted increases on Wednesday (4 cents).  The AWEX EMI finished at 1319 cents, its highest level since March 2023.  

The gains were across the board in the Merino sector with rises of 30 to 40 cents clean commonplace.  

17 microns were a standout, adding to their previous gains with an increase of 57 and 69 cents in Melbourne and Sydney.  Despite the recent gains the 17 Micron Price Guides are still trading around 1000 cents below their recent peak in 2022.  

Sellers remain keen to capitalise on the rally, driving the clearance rate to a 12 month high of 97.4pc.  

Merino skirtings tracked a similar path to the fleece types, increasing sharply over the two days. This was particularly for best length, low vegetable matter types on the back of strong buyer support.  

Crossbreds are now at four to five year highs after firming 10 cents clean this week, continuing on their steady rally from the past 12 months.  Merino Cardings were generally 10 to 20 cents dearer for the week with odd pockets 30 to 40 cents higher.  

Just under 31,000 bales are expected next week in Sydney, Melbourne and Fremantle, the latter holding another one day sale.