The Northern market indicator increased by 10 cents to 1,717 ¢/kg. Gains in Sydney were mostly concentrated to the finer microns, with the 17.5 MPG lifting 30 cents to 2,228 ¢/kg and the 18.0 MPG adding 26 cents to close at 2,172 ¢/kg. The 18.5 and 19.0 micron guides also attracted steady interest, rising 14 cents to 2,109 ¢/kg and 13 cents to 2,061 ¢/kg respectively, while the 19.5 MPG recorded a stronger gain of 28 cents to finish at 2,032 ¢/kg. Merino cardings in the north followed the positive tone, increasing by 10 cents to 892 ¢/kg.
In the Southern market, the indicator added 14 cents to finish at 1,651 ¢/kg. Melbourne recorded the strongest individual gains for the week, led by a 46 cent rise in the 17.5 MPG to 2,236 ¢/kg and a 32 cent increase in the 18.5 MPG to 2,124 ¢/kg. Other fine wool categories also performed well, with the 17.0 micron guide rising 28 cents to 2,258 ¢/kg and the 19.5 MPG gaining 23 cents to finish at 2,031 ¢/kg. Medium microns found support, with the 21.0 MPG lifting 16 cents to close at 1,995 ¢/kg, while cardings improved by 6 cents to 869 ¢/kg.
The Western market recorded the strongest regional performance, with the indicator rising 19 cents to finish at 1,878 ¢/kg. Fremantle saw broad based gains across the merino fleece sector, led by a 23 cent increase in the 17.0 micron guide to 2,235 ¢/kg and a 21 cent rise in the 19.0 MPG to 2,052 ¢/kg. The 18.0 and 19.5 micron categories both strengthened, lifting 20 cents to 2,151 ¢/kg and 19 cents to 2,017 ¢/kg respectively. Merino cardings in the west outperformed the other centres, jumping 27 cents to close at 946 ¢/kg.
This week in Mecardo Andrew Woods analysed January AWTA core test volumes which fell 20.9% in farm bale terms (see more here). He noted that season to date volumes are down 10.6% and further declines of 15% are required by June to meet full season forecasts. He highlighted that this supply contraction is driven by shrinking sheep numbers and lower clean fleece weights following a dry spring across the south. He further observed that the substantial drop in the number of farm bales core tested implies the national flock may have already contracted by 12% to align with current production estimates.
Wool market finds its footing
Next week
Next week, the national offering is forecast at 37,971 bales, with sales scheduled for Tuesday and Wednesday in Sydney, Melbourne, and Fremantle.
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Data sources: AWEX, AWI, Mecardo
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