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Thursday, May 14, 2015

Merino fleece joins crossbreds on the bullish run

By Augusto Semmelroth  |  Source: AWEX

As we all know, wool has been on a bull run. Finally, after bouncing around between their 70th and 80th percentiles since early 2014, all 19 to 23 micron wools broke through that range and made their way beyond their 90th percentiles. In the meantime, crossbred wools and merino cardings continue their uptrend to push the 100th percentile level to unforseen grounds.

Key points:

  • Major price recovery in Merino fleece wools after tracking sideways for over a year.
  • Aggregated gains for the last 6-8 weeks already total 170-200¢ for wools in the 16.5 to 21 micron range on the east coast.
  • Medium wools of 22 and 23 micron have also posted a solid recovery since the break, but gains are slightly more restricted, at the 130-140¢ mark.
  • In percentile terms, however, most merino fleece types have surge beyond their 80th percentiles in recent weeks and are now above the 90th percentile.
  • In the west, the price recovery has been equally remarkable, with wools in the 18.5-19.5 micron range up 180-200¢ over the last seven weeks.
  • Medium wools have posted gains in the order of 140-170¢ during the same period.
  • This puts all micron categories in Fremantle at around their 90th percentiles or above.
  • While the merino fleece wools have stolen the spotlight in the last few weeks, crossbred wools and merino cardings continue their remarkable uptrend on the sidelines.
  • Crossbred and merino carding wools have been moving higher for over 10 months, and breaking record levels along the way.
  • To put this ongoing price recovery into perspective, the current 100th percentile is already 20-22% higher than back in January this year for most wools in the 28-32 micron range and cardings.  

Read more about how to interpret percentiles

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Northern MPG
Northern MPG

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Go to Wool data

Southern MPG
Southern MPG

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Western MPG
Western MPG

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Go to Wool data

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