Australia sees surge in wool prices amid increased Chinese buying

Australia witnessed a significant surge in wool prices at this week's auctions, driven by heightened Chinese demand. Merino wool varieties saw an increase of 25 to 50 Australian cents, outshining competition from India and Europe. The uplift began on Tuesday, marking a departure from the recent downward trend, with merino types experiencing notable gains. 

However, crossbred and carding wools did not attract similar interest, experiencing minimal price impacts. The Australian dollar's jump against the US dollar by 2.2 per cent, following US inflation data, initially caused concern among Chinese buyers. Yet, demand remained strong, with prices further escalating by 5 to 10 Australian cents, bolstered by offshore interest, the Australian Wool Innovation Limited (AWI) said in its commentary for sale week 20 of the ongoing Australian wool marketing season. 

The market strength, particularly in 19 to 21 micron wool types, was largely influenced by Chinese indents, compelling traders to meet the new price levels. Next week anticipates the sale of 43,000 bales, maintaining the market's robust outlook, the AWI commentary added. 

About 43,000 bales is rostered for sale next week on Tuesday and Wednesday. 

Fibre2Fashion News Desk (KD)