Fine Merino results were mixed, with prices easing in Sydney but recording modest gains in Melbourne and Fremantle. Medium Merino microns strengthened, ending up to 5 cents higher, while crossbred wools came under pressure, declining by 5 to 10 cents, the Australian Wool Innovation (AWI) said in its commentary for week 25 of the current wool marketing season.
National offerings fell week on week to 38,265 bales, with the clearance rate easing slightly to 92.9 per cent. Market activity reflected increased discrimination by buyers across style and micron, rather than any shift in underlying demand.
The Australian dollar softened against the US dollar during the week, offering some support to wool prices in export markets. While broader US dollar strength continues to weigh on the currency, expectations of tighter Australian monetary policy could limit further depreciation, the AWI commentary added.
Meanwhile, the Australian Wool Production Forecasting Committee released its December outlook for the 2025-26 season, forecasting shorn wool production of 244.7 million kg greasy, down 12.6 per cent year on year. Sheep shorn are expected to fall 10.3 per cent to 56.5 million head, while average cut per head is projected at 4.33 kg greasy, down 2.7 per cent. Production is forecast to decline across all states.
With sheep numbers unlikely to recover for 18 to 24 months, supply constraints are expected to persist, providing underlying price support.
The next wool sale is scheduled for the week commencing January 12, 2026.
ALCHEMPro News Desk (KD)
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