Fine wool slips, broader types soften

The Northern Indicator eased 6¢ to 1,225¢, with reports suggesting buyers are favouring well-prepared lots exhibiting strength above 35 N/ktex and minimal vegetable matter. The Southern Indicator lifted 1¢ to 1,179¢, buoyed by demand for fleece yielding over 68%. In contrast, the Western Indicator dropped 26¢ to 1,340¢.

Merino fleece performance was mixed this week. In Melbourne, the 17 MPG rose 4¢ to 1,662¢/kg, while the 17.5 MPG gained 5¢. The 18 MPG held firm at 1,597¢, but broader types like the 19 MPG softened, falling between 13¢ and 41¢ across selling centres. In Sydney, results were also mixed, with the fine 17 MPG down 20¢, while the 19.5 MPG rose 12¢ to 1,494¢. Fremantle was the hardest hit, with finer types such as the 18 MPG falling by 50¢. 

Crossbreds provided a bright spot. The 26 MPG in Melbourne added 21¢, Cardings also found support, with the Southern MC up 24¢. Fremantle’s finer skirtings under 17.5 microns and less than 3% VM were particularly well supported.

This week in Mecardo, Andrew Woods provided an update on wool market trends to look at shifting demand dynamics (read more here). He found that wool production is down due to dry conditions, rising costs, and lower sheep numbers. Merino wool volumes are down 12%, hitting their lowest since the post-Reserve Price Scheme era, especially in broader micron categories. And finally, that non-merino wool is down 14% but stays within its usual range.