Mixed outcomes mark commencement of 2024 Australian wool auctions

The Australian wool auctions for the start of the 2024 calendar year showcased a mix of results, with some notable changes in price levels across different wool types. While the 17.5 micron and finer super fine and ultra fine Merino sectors experienced robust gains, broader Merino fleece wools saw a decline of 15ac or more, especially evident in the lower WA market prices in Fremantle. Skirting types remained solid, crossbreds showed a slight drift, and cardings managed small gains.

The dominant buying force in the Merino combing wools segment was Australia's largest exporter, securing nearly a quarter of all bales of these types. Another emerging exporter also made significant purchases in the crossbred segment. Representatives from two major Chinese top makers were active in the Merino fleece category, creating a competitive environment for forward sellers, the Australian Wool Innovation (AWI) said in its commentary for week 28 of the current wool marketing season.

Despite potential weakening in foreign exchange rates during the three-week recess, the overall results were considered favourable for grower sellers. The Australian Dollar (Au$) versus the US Dollar (US$) remained over or near the 0.68 level, limiting fresh business to many export destinations. While the euro favoured grower sellers, demand from that region remained subdued, the AWI commentary added.

Next week's auctions are set to feature over 55,000 bales, with Melbourne requiring three days to complete its offering. Auctions are scheduled for Tuesday to Thursday.

Fibre2Fashion News Desk (HU)