Wool market update -18 August

The latest on the Australian wool market Season 24 Week 7 direct from the Elders wool team.

After opening the 2023/24 wool selling season with two weeks of gains, the Australian wool market has fallen for the second consecutive series. 

It was expected be a reasonably large sale and the 46,367 bales on offer was very close to the forecast figure. 

Although the wool on offer received good buyer support, the prices on offer were consistently below those achieved during last week’s auctions. 

The largest falls were felt in merino fleece types, with the losses felt across all types and descriptions. 

Across the three selling centres, the individual Micron Price Guides (MPGs) for merino fleece dropped by between 6 and 61 cents for the series, only the 16.5 micron MPG in the North resisting the trend, posting a 3 cent gain. 

The merino skirtings followed a similar path to the fleece, while the crossbred sector recorded very little change. The three Merino Carding Indicators (MC) fell by an average of 10 cents.  The net result was a 13 cent drop in the AWEX Eastern Market Indicator (EMI). The EMI closed the series at 1,163 cents. 

Currency continues to play a large role in market movements. 

Although the loss in the EMI was minimal (1.1per cent in AUD terms) a 1.11 cent drop in the AUD compared to the US, meant that when viewed in USD terms the EMI lost 21 cents, a 2.7per cent fall. 

Due to this being a quieter time of year for shearing in Western Australia, lack of quantity dictates that there is no need for a sale next week (Week 8) in Fremantle.  

With only Melbourne and Sydney in operation the national quantity is expected to drop to 39,962 bales, selling on Tuesday and Wednesday. 

Week 8 is also host to Wool Week, an important time on the Wool Industry calendar, with a range of events scheduled (predominantly on Thursday), giving stakeholders across all sectors of the industry a chance to interact.

Table showing wool prices 17 August 2023 Table showing wool prices for Week 7, Season 23
Graph showing auction forward indicative prices  17 August 2023 Graph showing Eastern Market Indicator (EMI)

For full details of auction sales, download the reports below.

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