Wool Market Update (November 2024)

The wool market has continued to remain relatively stable with the EMI hovering in the 1,100-1,200 c/kg bracket for the past 18 months. Year on year, the EMI has fallen 2.8%. Crossbred wool has been the only category to improve over the last 12 months, albeit from a low base. As the Profarmer graphs below outline, price deciles range from 3-4 across all micron grades.

 The insipid demand and resulting price for all wool classes, is largely due to the ongoing global economic downturn, which has reduced the demand for all woollen products. When consumers feel like they have less discretionary funds available, expensive premium products which most woollen products are perceived to be, generally see a reduction in demand. From high end garments made from merino wool through to carpets, rugs, blankets and insulation derived from crossbred wool, these products can all be substituted with cheaper inputs such as cotton and synthetic materials.

 With the EMI currently sitting at 1,137 c/kg clean, this should result in net average returns to clients with 19 micron Merino clips, of around $9.07/kg greasy assuming a yield of 65%. This would produce a return of $54.44/head net for sheep cutting 6.0 kg/head greasy.

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