Merino fleece prices were firmer across all centres. In Sydney, the finer end held their ground, with 17 micron closing at 1,696¢, while in Melbourne and Fremantle medium microns led the gains, with 19 micron at 1,547¢ and 21 micron at 1,457¢. Crossbreds also added to the strength, with the southern 28 micron indicator finishing at 528¢ and the 30 micron closing at 440¢ in the north. Carding wools found support, ending the week 5 to 15¢ dearer across locks and crutchings, while the Southern MC indicator held steady near 761¢. Skirtings were generally firm, with low vegetable matter types attracting small premiums.
AWEX reported that the rally has been underpinned by tighter supply, with wet conditions slowing shearing and receivals in several regions. AWI noted that since the recess, end-user demand has broadened, with China, India, Italy, and the Czech Republic all active, reflecting the role of currency in shaping demand.
This week in Mecardo, Andrew Woods analysed recent offtake data and noted that seasonal conditions remain front of mind across the industry (see article here). He found that the Eastern sheep offtake is sitting at around 14%, which is slightly contractionary, while lamb offtake has eased from 36% to about 33% as recent rainfall provides some support for stabilisation. With combined offtake still above neutral levels, the flock’s recovery now hinges on whether spring rain arrives in time. For wool, a tightening flock points to reduced clip volumes ahead, reinforcing the current supply-side support for prices.