The wool market in Australia has shrugged off concerns about the Coronavirus and got down to business working on refilling the pipeline. The market showed considerable strength across virtually every micron group and quality type as buyers from all parts of the globe had a crack. Initially markets such as equities reacted badly but then mostly recovered or even increased such as the Australian stock market which is up around three per cent since the crisis began.

Supply chains in virtually every industry are being stretched, sometimes to breaking point. However, the wool fiber is known for its strength as well as elasticity. Often the wool market leads the way or more likely just recovers quicker. European, Indian and other Asian countries are all operating more or less full steam ahead, and production managers are searching high and low for wool to process.

The most commonly held position at the moment is that no new production will be coming off the combing machinery until March. Essentially this would see no new production of tops or yarn reaching Europe until the end of April which may test the elasticity of the supply chain to the very limit. In the meantime, the greasy wool market is being balanced very well by the growers on the supply side of the equation.