Australian wool clip shifts finer, impacting market dynamics

Western Australia's merino wool clip has undergone a significant shift towards finer micron categories. In the three months leading up to November, 21-micron wool volumes fell by 52 per cent, while 15-16 micron volumes increased by 80-90 per cent. This dramatic shift, coupled with a 14 per cent overall decline in clip volume, has implications for the global wool market.

While the eastern merino clip also experienced a finer shift, the impact was less pronounced. However, both regions saw a decline in crossbred wool production. The combined increase in fine merino volumes, particularly in the 14-16 micron range, could exert downward pressure on prices in this segment, which is already facing demand challenges.

The ongoing decline in broad merino production may support prices for these categories. However, sustained low production could lead to structural adjustments in the supply chain, potentially reducing future demand. The western merino clip's finer shift can be attributed to several factors, including genetic selection and climatic conditions. This trend has resulted in a significant narrowing of the micron gap between eastern and western merino wool, with western wool now averaging 0.26 microns finer.