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West Australian
29-05-2025
- Business
- West Australian
Australian wool markets sees first increase, 14 cents, for first time in four consecutive weeks
The Australian wool industry is breathing a sigh of relief as the wool market makes its first meaningful recovery after four consecutive weeks of declines. Wool industry experts say the result — owing to the stabilisation of the Australian currency, an increase in consumer confidence and an increase in woollen top sales — is indicative of future market trends. The Eastern Market Indicator added 14 cents to close at 1203¢/kg on April 22. Australian Wool Exchange senior market analyst Lionell Plunkett said the national offering was the smallest it's been since 2020 at 26,897 bales. With Fremantle not in operation, bales were down 3762 on the week prior. Mr Plunkett said the smaller offering this week attracted good widespread competition, pushing prices higher from the outset. 'Although the strongest demand continued to be on the higher yielding lots, particularly those possessing favourable additional measurement (AM) results, with such a limited selection of these types, the lesser style types and wool with less favourable (AM) results also benefited from the rising market,' he said. 'On the opening day, all the published individual AWEX Micron Price Guides across all three centres posted upward results. 'The Merino fleece MPGs added between 5 and 54 cents. 'The crossbred and skirting markets both trended higher.' Mr Plunkett said the benchmark EMI added 10 cents for the day — the biggest daily rise in nine selling days. 'The EMI also managed a US2¢ increase,' he said. 'This was the first time the EMI rose in both Australian (AUD) and US currency terms since the 19th of March.' On the second day, AWEX said the market again trended higher. 'The EMI rose again in both AUD and US terms, adding 4 and 3 cents respectively. 'The EMI finished the series 14 cents higher, closing at 1203¢/kg clean.' Although most wool types experienced a rise, the Merino carding indicator was the only anomaly with a 28¢/kg drop in Melbourne. Westcoast Wool and Livestock regional wool manager Brad Faithfull said he was confident the wool market had found its base level and would continue a positive trend. He said a major indicator in the trend was the increase in woollen top sales, which was 'always a good sign'. Demand from trader buyers forced price rises into the local sale rooms as trading exporters quite often had to outbid the top makers and indents to meet their shipment obligations. 'We have also seen our currency — which has been radical for a while — stabilise and an increase in producer confidence,' Mr Faithfull said. 'Greasy stock is down at an international level which is also boosting demand.' Around 28,000 bales are being offered on April 29, with the WA centre at Fremantle selling just one day again on Tuesday.
West Australian
13-05-2025
- Business
- West Australian
Dusty, low-yielding wool is the current norm Australia-wide due to dry seasonal conditions
A lack of rain across the country is taking its toll on Australian wool quality, with dusty, low-yielding wool more prevalent than usual. The industry is not unfamiliar with dry conditions and experienced similar conditions this time last year but traders say it has been difficult to find a home for lower-style wools. Australian Wool Exchange senior market analyst Lionell Plunkett said the ongoing dry weather across the country had contributed to dusty growing environments. He said in turn, this resulted in reduced fleece yields and had negatively impacted wool style and quality. AWEX classifies wool into seven style categories, ranging from one (choice) to seven (inferior). Most Australian wool is usually graded within style categories three and five, but during the past four to six weeks there has been a clear increase in the number of sale lots assessed as style six and seven. Mr Plunkett said the decline in style quality had been particularly noticeable in the Southern and Western selling centres. Figures from the Southern region increased 14 percentage points since the final sale of 2024, from one per cent to 15. 'In the Western region, the proportion has risen sharply from 2 per cent in December to 23 per cent this week,' Mr Plunkett said. 'Traders are finding it increasingly difficult to integrate these lower-style wools into existing orders, which is placing further downward pressure on the market.' The Eastern Market Indicator fell 19¢/kg during the May 6 and 7 sales, to close at 1191¢/kg, but prices were still up five per cent, or 57¢, compared to the same time last week. The latest stats marked the third week in succession of falling prices, with brokers attributing price variances to varying quality. Westcoast Wool and Livestock broker Justin Haydock said he is currently seeing 'a lot' of low-yielding wool come through the system, believing it to be season-related. 'It seems to be worse than usual,' he said. Mr Haydock said he was watching 21 microns carefully, believing changes to the 21 microns in the market would be reflective of the market as a whole but does not believe there will be a shift any time soon. 'I believe the micron price spread will stay low for quite some time with many breeding objectives over the years being to produce a finer wool while maintaining wool cut, seasonal conditions nationwide — causing a finer micron,' he said. 'In my opinion, the only way we will see fines lift is if 21 microns can break through their resistance level of 1500, something they have rarely done. 'Due to a supply-and-demand scenario, historic data tells us that the micron price spread could stay low for the near future until we see an increase in broader wools on the market.'
