Australian wool market gains as Merino fleece prices rise

 

The Australian wool market maintained its upward momentum, with most wool types recording price increases. Strong competition in the Merino fleece sector drove up gains by 15 to 30 cents per clean kg, while crossbred and carding wool prices remained stable. The highest price points were reached at the close of sales.

Exporter traders played a key role in the market’s strength, with new forward contracts boosting demand. China remained the dominant buyer, following the price trend upward, while other global markets showed limited interest.

As the seasonal wool dispersal nears completion, auction volumes are expected to stay below 40,000 bales in the coming weeks. With fewer freshly shorn clips entering the market, grower-held stocks in storage are now the primary source of additional supply. However, many growers may withhold wool unless prices rise further.

Drought conditions have affected the quality of wool at auction, leading to lower staple strength, increased vegetable matter, and reduced yields. Despite these challenges, industry confidence is improving. Overseas mills and traders are stabilizing financially, and with an improving global economy, many in the industry are optimistic about future profitability.