Australian wool prices rise slightly this week

During the week, the AUD/USD rate was even lower allowing for cheaper buy-in levels than the closing USD quotes.

China’s first stage manufacturers kept their recent buying pressure on and strongly influenced the auction competition. This forced traders and indent buyers to up their ante as far as quantity obtained. New business opportunities to exporters were available, but were very sporadic, limited in volume - mostly a negotiation from what both the overseas buyer wants and what the seller is prepared to commit to - and very price sensitive, the Australian Wool Innovation Limited (AWI) said in its commentary for sale week 22 of the current wool marketing season.

“The ongoing issue with international logistics is a large contributor to market outcomes at present. The shipping situation is unpredictable at best. Vessels booked may arrive and sail or be delayed or not arrive at all. Container access and port delays are also playing a negative role. Combine those issues with the upcoming three-week recess for Christmas and commercial decisions for local auction buyers become increasingly difficult and greater risk,” the AWI commentary added.

Merino fleece pricing had superfine (<18 mic) types selling 10ac better, fine (18.5 to 20.0 mic) types firm and medium (>20 mic) wools upward of 15ac stronger. Skirtings sold to the sellers favour, cardings remained firm and crossbreds sold 5ac lower.

Next week’s wool auction will see around 41,000 bales being offered on Tuesday and Wednesday.

Fibre2Fashion News Desk (KD)