Merino skirtings in the past 12 months have been out performing the fleece however whilst performing in sellers favour it was the best specified Low VM lots attracting premiums.
The AWEX EMI closed on 1242c, up 17c at auction sales held in Australia last week with 38,246 bales went under the hammer and a 95.7% clearance to some bullish bidders.
Merino Fleece led the way with most MPG’s closing up 20c- 35c with the 17MPG and finer lots adding just 5-15c across the various centres.
Competition was widespread, however, it was Australia’s largest trading exporter who dominated every sector of the market. Whilst the dominant force the top purchaser was pushed by aggressive bidding from the Chinese and India indent buyers and other trading exporters.
The AUD – USD exchange rate strengthened in the early part of the week, which didn’t seem to have a negative effect on the market. I got the impression that the early-stage processes are in a very precarious stock position!
It was interesting to note that on Thursday and Friday the AUD fell 1c against the US dollar to settle around 62.85c. As we are hearing on the news daily the Trump administration is shaking things up in the geopolitical space, which will undoubtedly affect markets and currency exchanges.
Fleece was the main act which was refreshing, and has been a rare occurrence for the past 36 months. However, this week’s performance can only be interpreted as demand for stock at the Topmaking stage driven by a lack of quantity in the pipeline, rather than pull through from the retail end.
Merino skirtings in the past 12 months have been out performing the fleece however this week whilst performing in sellers favour it was the best specified Low VM lots attracting premiums to the market average. Everything else was in line with the fleece price increases.
Merino cardings – this sector posted another solid week, especially for the bulky locks and crutches stop rises of up to $.14 we are experienced across All centres.
Crossbreds
The sector opened fully firm with Tuesday’s market holding or increasing! As the week progressed, it was only the best specified and prepared the continue to hold their ground whilst discount for the other lots!
Market Commentary
A significant win was announced by Angus Ireland, AWI’s Program Manager, Fibre Advocacy & Eco Credentials who highlighted “the role of Australian growers in highlighting the flaws helped greatly”
The proposed environmental labelling on apparel products for sale in the European Union (EU) that threatened to disadvantage Australian wool has been deferred. Read more on Australian woolgrowers help improve European textile labelling.
With the wool market seller participants welcoming the 4-weeks 58c increase in the EMI, it has been some “just- in- time relief for an ailing market sector.
The big question will be how well the industry consumes an increase to 41,064 bales on offer for Sale next week! We are hearing through our exporter friends that Chinese processes are consistently complaining about the increase in US the cost of wool. The current EMI on 785usc, the highest since January 2024! On behalf of woolgrower, we have a very valid counter argument.
~ Marty Moses.