Wool market update

A welcome week for the wool market, with solid increases across the majority of merino MPG’s (Micron Price Guide) seeing the EMI (Eastern Market Indicator) finish the week at 1458, an increase of 39c. 

Tuesday was the first day of selling and all three selling centres operated. The full range of merino combing types were targeted by oversees mills with a general increase of 20 to 40c, while crossbred types held previous weeks values, with minimal single digit changes. This resulted in an overall increase of 15c to 1434 for the EMI. 

Day two the market was again positive and managed to add another 30 to 40c across all merino MPG’s and crossbred fleece sold in a similar trend to the day before with minimal change. 

With the full range of merino combing fleece gaining value, the best performing MPG’s finished the week gaining up to 77c. It appears the current low supply and recent demand signals are having an effect across the whole merino micron range for combing types primarily. 

Merino cardings prices continue to wane with the MCI (Merino Carding Indicator) sitting at a percentile of 37, telling us demand for those end products aren’t in the same demand boat. By comparison the 19 to 30 micron MPG’s are at 97 99 percentile when compared to the last five-years. 

It is worth noting Fremantle sold on Tuesday only, so their MPG’s are missing Wednesdays (second day) gains. 

Current supply of merino fleece across all states sits at a tested average micron of between 18.5 to 19 micron and the volume of 21 and broader is getting less and less. 

The 22 micron MPG is only quoted out of Melbourne this week and in the north, there was not enough volume of 21 microns to quote.