Brought to you by AG Concepts

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

Mecardo information is provided to assist in your marketing decisions. It contains a range of data and views on the current market. It is not intended to constitute advice for a specific purpose. Before taking any action in relation to information contained within this report, you should seek advice from a qualified professional. The information is obtained from a variety of sources and neither Mecardo nor Ag Concepts Advisory will be held liable for any loss or damage whatsoever that may arise from the use of information or for any error or mis-statement contained in this report. 


Sign up for a FREE BASIC SUBSCRIPTION now to read this article.

Mecardo will send you its latest market analysis outlook delivered to your Inbox as it's published.  You will also receive one month Premium access for free.

You tell us what information you want to hear about, so you'll only be alerted to information that is relevant to you.

Learn more about Mecardo Sign Up Now!