The strongly appreciating wool price run continued with gusto at this this weeks’ Australian wool auctions. In just two weeks, 103ac (+8.4%) has been gained on the EMI and even more relevant is the 10.2% or 84usc gain on the demand leading USD EMI figure. Even more impressive has been the Western markets indicator (WMI)  - which is almost solely Merino based. The WMI USD price has shot 10.5% higher in just the past fortnight.

The strong demand that emerged the last few weeks for mainly Merino fleece and skirting wools stayed the course almost till the final day of selling this week. The final day saw just a slight softening in prices at the standalone Melbourne sale as exporters filled forward contracts and indent orders completed their FCL (full container loads =111bales) quantities. There was disparity in gains between centres and individual micron prices, but by weeks end, the three centres public quotations were the most evenly aligned seen for quite some time.

All Merino combing wool descriptions were a general 60 to 90ac dearer for the week. The better specifications and lower VM were well sought, whilst some lower spec sale lots became a little unstable in price towards the close of selling. Crossbred wool and carding types gained a general 10ac/clean kg.  

Whilst these gains are very much a good result thus far, the rises are coming off a low base, compared to and considering the prices achieved through the 2017 to 2020 years. Competing land use is stronger than ever at present for property owners, with many alternative enterprises being available. Wool prices simply must continue to recover value for wool growing to compete against these other options as floods, droughts and bushfires impact heavily at times across Australia.

Wool auction sales now go into a three week recess and will recommence in the week beginning 9th January 2023. We wish all a good break and enjoy a happy, healthy and prosperous New Year.