AUSTRALIA’S wool market strengthened further this week, with the benchmark indicator rising 30 cents over two days of auction selling this week.

The Australian Wool Exchange said AWEX Eastern Market Indicator lifted 11 cents on Tuesday and a further 19 cents on Wednesday, extending the market’s run of gains to five consecutive selling days.

“This follows the previous week’s stronger result of 54 cents, resulting in an 84-cent rise in a fortnight.”

AWEX said buyer demand remained solid despite a limited national offering of 23,414 bales, the smallest weekly roster in 12 months, and 2299 bales fewer than last week.

Auctions were held only in Sydney and Melbourne, while Fremantle paused for sales due to the Western Australia public holiday.

“With fewer bales available, buyers competed strongly across most categories and all Micron Price Guides recorded increases in both selling centres,” AWEX said.

“Merino fleece types were generally 20 to 30 cents dearer, although some pockets rose by as much as 50 cents.

“Well-prepared superfine lots continued to attract premiums, while Merino skirtings also posted gains in line with fleece types, AWEX said.

“Crossbred wools maintained their recent momentum, with 30-micron types among the standout performers, particularly in Melbourne.

“Merino cardings also continued their upward trend, with Melbourne’s Carding Indicator now at its highest level in eight years.”

AWEX said selling will recommence in Fremantle next week, which will lift the national offering to 26,178 bales.

“Despite the overall larger volumes the week is expected to be the second-smallest three-centre roster seen in the past six years.”

Securing wool volume is a priority – AWI

Australian Wool Innovation said the broad-based nature of the gains across the Merino, crossbred and carding sectors reflected strong competition throughout the market.

“Beneath the positive market result lies an increasingly important structural story.

“Australian wool supply continues to track at low levels, with this week’s offering the smallest seen in 12 months.”

AWI said although next week’s roster will increase with the return of Fremantle, available volumes remain subdued.

“As a result, buyers are operating in an environment where securing volume remains a key priority.

“Within that broader supply-driven environment, buyer behaviour also pointed to an increasing preference for wool that delivers processing certainty,” AWI said.

“Benchmark specification fleece generally outperformed the broader Merino average, suggesting processors were willing to pay additional premiums for wool offering superior yield, consistency and manufacturing efficiency.

“As raw wool prices rise, the commercial cost of processing risk also increases, further supporting demand for higher-performing lots.”

Sources – AWEX, AWI.