Wool Market Update (May 2024)

The current wool market has been relatively stable since the highs and lows seen between 2018 and 2021. The current EMI is sitting at 1,152c/kg clean, a fall of approximately 160c/kg year on year, or 12%. The current outlook on wool prices mirrors the last 2 years, with no one factor having a significant influence on the market.

The relatively small movements in the wool price during this period are largely due to fluctuations in the AUD/USD exchange rate and perceptions on the strength of the global economy.

Looking forward, the main factors expected to have a significant impact on wool prices include domestic seasonal conditions affecting production, plus global economic conditions impacting the demand for high-end garments.

Wool supply is forecast to decrease by 5.8% during the 2024/25 season, due to decreased sheep numbers, while wool cut per head is expected to remain stable. This reduction in supply is not expected to make as large an impact on wool prices, compared to other factors, such as fluctuations in the AUD/USD exchange rate and the global economic outlook.

The current 10 year Decile wool prices by micron and 12 month price change can be seen in the following graphs published by Profarmer. As the graphs below show, the significant premium for fine and superfine wool has disappeared, with current Decile prices across the 17-21 micron range at or below a Decile 5.

Deciles are based off the previous 10 year period.

The following graph shows the AWEX Eastern Market indicator (EMI) in cents per kilogram clean, from 2014 to date.