Lacklustre results for the Australian woolgrower this week, with the wool auctions across the three selling centres failing to arrest the sluggish downward price trend currently being experienced in the Merino fleece sector.
An abundance of fine and superfine Merino fleece types flooded the market, which resulted in the 19.5 micron and finer area to fall by 20 to 30acents clean/kg. Broader Merino types were less affected, and 20.0 micron and broader types were generally unchanged for the week in the eastern Australian centres, but 10 to 20acents clean/kg cheaper in the Fremantle centre in Western Australia.
In a most unusual situation, there is now virtually the same clean price being offered (within 30acents clean/kg) for all fleece of 18.5 to 22 micron. In clear market signals perhaps we are now suffering the price effects of producing wool to the “micron chasing” mentality of the past decade or so?
Click here to access AWI's Wool Market Weekly Report (pdf 484Kb).