Australian wool auction ends year with record highs

The auctions were characterised by intense competition, particularly from buyers representing Chinese interests. This fervent bidding, described as more than just animated, significantly overshadowed the minimal participation from other wool-using nations. The absence of the usual European and Indian purchasers was distinctly noticeable, with a significant portion of the superior fine merino wool being shipped to China, the Australian Wool Innovation (AWI) said in its commentary for week 24 of the current wool marketing season.

Australian Bureau of Statistics data indicates a significant decrease in wool purchases by Europe and India, with up to 25 per cent less wool bought compared to the previous year and a corresponding drop of over 40 per cent in the value of exports to these regions.

Despite the overall success, the final day at the Melbourne auction saw a slight downturn, with prices retracting slightly from the highs of the previous two days. However, the week was marked by exceptional individual price gains, especially for all merino wools finer than 17.5 micron, which recorded increases over 100ac. Other merino wools also saw significant gains, while the crossbred and carding sectors experienced modest improvements, the AWI commentary said.

The Australian dollar's strong performance, gaining 3 per cent in general value over the week, had a substantial impact on prices in USD and Chinese yuan, which surged by nearly 6 per cent by the end of the auction. These prices set the stage for the next month's trade, as the wool auctions now enter a three-week recess.

The wool auction sales are scheduled to resume in Australia in the week commencing January 8, 2024, with an anticipated offering of 45,000 to 50,000 bales.

Fibre2Fashion News Desk (KD)