Strong demand holds Australian wool prices amid drought impacts
05 Jun '25
1 min read
Pic: Shutterstock
Insights
Australian wool auctions saw Merino prices dip 10 cents while crossbred types rose by the same margin.
With Fremantle absent, volumes dropped below 23,000 bales, though clearance rates topped 90 per cent.
Despite a stronger Australian dollar, US dollar-equivalent values stayed firm, reflecting steady global demand.
Low supply and mixed quality constrained buying.
This week’s Australian wool auctions showed a mixed performance as Merino prices slipped slightly by 10 Australian cents, while crossbred wool types rose by 10 cents. With Fremantle not participating, auction volumes dropped to below 23,000 bales in Melbourne and Sydney. Despite softer prices, clearance rates remained high, exceeding 90 per cent as growers remained keen to sell.
The firm US dollar-equivalent price levels signalled stable international demand, even as the Australian dollar strengthened against both the US dollar and Chinese yuan. Exporters noted that slight declines in local currency values helped maintain market equilibrium despite overseas buyers placing aggressive bids to meet inventory needs, the Australian Wool Innovation (AWI) said in its commentary for week 49 of the current wool marketing season.
However, low auction volumes limited purchasing activity, as local exporters and processors avoided pushing prices beyond global benchmarks. The reduced quantity and variable quality of wool, particularly for better types, have complicated bulk sourcing, with drought conditions continuing to impact many regions. Some rain has been recorded, and more is forecast.
Australian wool auctions saw Merino prices dip 10 cents while crossbred types rose by the same margin.
With Fremantle absent, volumes dropped below 23,000 bales, though clearance rates topped 90 per cent.
Despite a stronger Australian dollar, US dollar-equivalent values stayed firm, reflecting steady global demand.
Low supply and mixed quality constrained buying.
Next week, around 30,000 bales will be offered across all centres, with auctions scheduled for Wednesday and Thursday.
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