Woolgrowers encouraged to aim for 19-21 microns to attract stronger pricing on the back of sluggish demand

Wool growers have been urged to aim for the 19-21 micron range in their fleece production in order to achieve the best prices on offer in the sluggish international market.
The advice came in the latest Spring 2023 ANZ Agri InFocus Report, where ANZ associate director of agribusiness Alanna Barrett said individual pricing results during the past year demonstrated “19-21 micron types” were the most price-resilient wool categories.
The wool market is tracking below the five-year average at 1131c/kg in the Eastern Market Indicator and 1270c/kg in the west.
The 19-21 micron types have achieved the biggest increases in the east and the lowest decreases in the west during Week 9 sales on August 28-30.
Ms Barrett said when examining the high, low, and closing price of 12 months of sales leading into this year’s recess — between the selling weeks of July 19 to August 2 — it was clear prices were favouring 19-21 micron wools.
She said the lack of demand from China was impacting the prices, although there were positive signs of market growth in India.

Kulin woolgrower Bryn Davies, who runs a 5500 head Merino flock, said he was aiming to make 900-1000c/kg greasy from 111 bales of his 2022 clip in the Week 11 sale at Fremantle this season, after not selling any wool last year.
“I should have sold last year,” Mr Davies said.
“In 2021, I made good money with 18 micron wool, and in 2022 we had a better (production) year.”
Mr Davies was waiting for his wool to be tested at the Australian Wool Testing Authority to know the exact micron but was hoping to achieve 18-19.5 micron.
“We produce a fine wool from small sheep,” he said.
“We push sheep pretty hard and feed a lot.
“We’re aiming to make 900-1000c/kg.”
Mr Davies said shearers had completed the on farm August shearing of about 2000 head with nine months of wool growth.

Ms Barrett said wool supply had been consistent on the back of the “fully stocked Australian sheep flock”, with 1.8 million bales offered for the 2022-23 season, representing a less than one per cent increase on the 2021-22 volume of bales offered.
“When reviewing the 2022-23 season, in terms of exports, the latest available data shows 82 per cent of all Australian wool was shipped to China, with almost seven per cent going to India, and four per cent to Italy,” Ms Barrett said.
“A significant rise in shipments to India has experienced, at 37 per cent, and although starting from a low base, any market diversification is a welcome addition to the wool industry.”
She said demand from China’s wool buyers for the Chinese domestic consumer, and their global wool customers, remained “the biggest unknown” heading into spring.
“It is estimated that at least 50 per cent of Australian wool processed in China is destined for the domestic consumer, and early signs being reported of a slowing of the Chinese economy may impact consumer spending on items such as wool,” Ms Barrett said.
“Other major end markets for Australian wool are largely spread throughout Europe and America, where cost-of-living pressures and risks of mild recessions in some nations remain present.”
The usual spike in demand from the northern hemisphere autumn and winter clothing purchases may not occur in 2023, due to the economic pressures on consumers.
Along with consistent supply in Australia, the lack of demand is expected to subdue any prices rises for Australian wool.
“In the current global economic settings, wool remains very competitively priced against alternate fibres (such as synthetics and cotton), which should assist to maintain wool as an option for consumers when price is a major factor in decision making,” Ms Barrett said.
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