While demand for new business remained sluggish and cautious, this strategic buying by key manufacturers suggests growing confidence in future demand. Unlike traders who focus on short-term movements, manufacturers plan months ahead, providing a vital boost to the market outlook, the Australian Wool Innovation (AWI) said in its commentary for week 46 of the current wool marketing season.
Price movements were mixed across centres. Melbourne recorded gains of 5 to 25 Australian cents across most types, except for Merino wools around 21 microns, which fell by 10 cents, and cardings, which dropped 29 cents. Sydney saw broader declines of 10 to 20 cents across Merino categories, while Fremantle held steady at last week’s levels during its single-day auction.
Crossbred wools emerged as the week’s highlight, posting gains of 5 to 15 cents despite a stronger Australian dollar, typically a headwind for this segment. Cardings remained under pressure, both in price and liquidity, the AWI commentary added.
Looking ahead, supply constraints are expected to tighten further as drought conditions spread across key wool-producing regions, reducing fleece weights and yields. Approximately 30,000 bales are scheduled for auction next week, with Fremantle operating only on Tuesday.
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