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Tuesday, June 30, 2015

Wool prices remain firm by historical standards

By Augusto Semmelroth  |  Source: AWEX

The wool market has displayed some intense volatility over the last few weeks with prices rallying earlier in the month followed by a sharp correction. In this kind of environment, percentiles fail to depict rapid dynamic moves in the market. However, for those looking beyond the heat of the recent price changes and into the market’s historical performance, percentiles remain a clarifying tool.

Key points:

  • Merino wool prices have seen a 150-200¢ correction over the last three weeks after a solid price recovery since April.
  • Most wool types in the 16.5 to 22 micron range have already retraced around 40% of previous gains, but still remain quoted at the upper percentile echelons.
  • Overall, finer wools continue to underperform medium wools in percentile terms, with fine wool premiums remaining depressed.
  • While medium wools remain in their 95-97th percentile levels they managed to reach 99-100th earlier this month with 21 micron wools moving above 1500¢/kg clean for a short while.
  • Merino fleece wools within the 18-19 micron range managed to move above their 90th percentiles a few weeks ago, but last week were back around their 86-88th percentiles.
  • Fine wool premiums remain tight with 19 micron wools tracking only 40-45¢ above 21’s while the 18-21 micron premium is back to 100¢ after reaching 150¢ earlier this year.
  • After posting a consistent price recovery for more than 10 months, crossbred wools and merino cardings saw prices ease last week from all-time highs.
  • Despite a 30-60¢ price correction, most wools in the 28-32 micron range remain in their 97-99th percentile level. The same is true for Merino cardings.
  • In Fremantle, all wools were double-hit last week as prices readjusted to eastern levels and buyer demand deteriorated.
  • Although western wool prices plummeted 170-195¢ last week, most wools remain in their 85-95th percentile levels. Medium wools are faring slightly better at the upper end of that percentile range.

Read more about how to interpret and use 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. 

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