Australian wool market gains on strong merino demand

“A smaller offering of 37,212 bales, combined with a softer Australian dollar, helped support the market and drive solid gains, particularly in the Merino sector. Year-on-year, the EMI now sits 542 cents (44.2 per cent) higher,” the Australian Wool Innovation (AWI) Limited said in its Commentary for week 36 of the current Australian wool marketing season.

Strong demand for finer Merino wool, supported by a weaker Australian dollar and tighter supply, continues to lift Australian wool prices.
While Merino segments posted significant gains, crossbred wools lagged.
With higher offerings expected next week, the market’s resilience will depend on sustained global demand and buyer confidence in premium-quality fibre.

Premium prices were recorded for high-strength, well-styled Merino fleece, while discounts remained evident in lots with higher vegetable matter, poorer colour and lower style grades. Finer Merino wools showed the strongest gains, increasing by 90 to 95 cents across selling centres, with Fremantle leading the rise as these types advanced by 115 to 120 cents. Medium Merino wool also attracted solid demand, gaining around 80 to 85 cents, the AWI commentary noted.

In contrast, the crossbred segment experienced a quieter week, slipping by 5 to 10 cents. The cardings market in the eastern selling centres maintained its positive momentum, rising 35 to 40 cents, while cardings in the western region eased by 5 to 10 cents.

Following the latest price surge, next week’s offering is expected to expand as sellers respond to favourable market conditions. A total of 45,973 bales is scheduled for auction across all three centres. Fremantle and Sydney will conduct sales on Tuesday and Wednesday, while Melbourne will auction wool on Wednesday and Thursday.

Fibre2Fashion News Desk (CG)