Merino fleece and skirtings open firm while cardings are a mixed bag

Published November 12, 2024

Merino fleece opened firm, on the back of reasonable quantities of 18.5 and coarser wool business being forward with competition continuing to firm across all merino fleece types as the week eventually closed.

Merino Skirtings initially opened fully firm on last week’s levels however the best specified and prepared skirtings continued to increase in price throughout the week.

Merino Cardings were a mixed bag across the three centres with Sydney barely maintained (-4c) Melbourne +7c and Fremantle + 20c.
The AWEX EMI closed on 1132c up 7c auction sales in Australia this week. The market came into the week with expectations of holding form on last week’s levels. 95.2% of the 35,405 bales on offer were cleared to the trade. The sale results were in seller’s favour for the 18 and coarser wools which rose 10-30c whilst the 16 17.5 MPGs were flat to cash or slightly cheaper.

Crossbreds defied all odds increasing another 5-10c last week. Whilst this is baffling the exporters, the Crossbreds have been on a slow and steady price incline for some time now which I believe is opposed to what is happening when price is being negotiated. Therefore, this oversold position may eventually deliver a negative result and possibly before Xmas..

Market Commentary: What will the impact of the US election have on the Wool Market? I’d like a $ for every time that question has been asked. My initial thoughts are: – not much from now until the market reopens in January 25.

Even then the current inflation pressures around the world will have not shifted enough to foster confidence in our customer. More than likely we may see a play from some processors to accrue -processed stock ahead of the demand curve that will emerge from the retail end.

This will be a period of increased market volatility which may take us into the latter part of 2025 or early 2026 before any sustained rises can occur when once more the garments will fly off the shelf.

The US imposition of Chinese product tariffs will have an impact on many industries however wool (with 1% of the textile market share) may escape any negative impact from the US industry protection policies that may emerge from the Republicans.

This week’s sales all commence on Tuesday with 36,573 bales on offer. Merino fleece and skirtings may feel some pain from the AUD strengthening experienced in the later part of this week. However, I do not think it will be a substantial movement either way.

On the other hand, we have been hearing that XB wool is oversold with current forward sales well under the current auction levels. Prices are expected to gravitate to the lower price offer sooner than later.

~Marty Moses.