AUD rise, demand dip affect Australian wool auctions

Superfine Merino types finer than 18 micron helped maintain the overall market with prices a general 20ac dearer. The better specified and more stylish wools were 40/50ac dearer at times, with the surprising activity of two or three Chinese orders competing against – and often outbidding – the normally dominant euro orders, the Australian Wool Innovation (AWI) said in its commentary for week 22 of the current wool marketing season.

“These positive results were countered though with the broader than 18.0 micron wools falling away throughout selling by 25ac. The larger falls occurred in Melbourne where volumes on offer were much greater. The WA market, which was almost entirely 18.5 to 20.5 micron wools, was a consistent 40ac cheaper across the type and micron spectrum,” the AWI commentary said.   

“Australia’s largest trading house dominated purchasing this week. Good support came from the top three Chinese top maker representatives who were progressively keener as prices drifted backward. The indents from both China and India were rather subdued, particularly from China who had been setting the higher price levels daily for the past two weeks,” the commentary added.

Meanwhile, problems at Australian wharves continue. One of the country’s largest ports operators (accounting for 40 per cent of movements) came under a cyber incident earlier this month which forced it to suspend operations for three days. Subsequent strike action and rolling stoppages by workers at this same company have also interfered with normal operations. This has impacted container shipping of wool and thus payments to exporters suffering delays who negotiate letters of credit to a bill of lading date (B/l). 

Next week, 48,000 bales are set to be auctioned.

Fibre2Fashion News Desk (RKS)