Australian wool prices down as demand softens ahead of Easter recess

Local exporters and buyers demonstrated little interest in adding to their inventory, as forward projections of auction volumes indicated substantial quantities still entering the market, the Australian Wool Innovation Limited (AWI) said in its commentary for sale week 40 of the current Australian wool marketing season.

In terms of export value, wool prices in US dollars decreased only slightly by 0.6 per cent, with the AUD/USD exchange rate improving by 0.7 per cent, effectively reducing the losses in Australian dollar terms. Fluctuating foreign exchange rates during the trading week continued to pose challenges to traders, as narrow margins could be quickly eroded if currency risks were not adequately managed.

“The Western Australian selling centre, often seen as an indicator of merino demand health, reported a softening market for merino fleece and skirtings. Prices dropped between 30ac and 50ac but remained stable after reaching those lower levels. Eastern centres experienced smaller declines of around 20ac, while cardings closed 20ac lower as well. In a limited offering, crossbred wool types were firm to 5ac cheaper, with competition from various sectors. Traders and exporters were the primary buyers, with some support from first-stage manufacturers,” the AWI commentary added.

After a one-week break, 54,000 bales are scheduled to be sold in two weeks' time.

Fibre2Fashion News Desk (KD)