Australian wool auction fails to boost prices despite weaker AU$

29 Sep '23

1 min read

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Insights

Australian wool auctions saw little price improvement, with merino wool bids down by up to 25ac and crossbred wool slightly higher.
A weaker Au$ failed to energise the market but provided some cushion.
Quality of new season wools improved due to drier conditions.
Chinese manufacturers are buying finer wools, and about 39,000 bales will be on sale next week.

Australian wool auctions continue to stagger as prices remain largely unchanged. Bids for merino wool were 15 to 25ac lower, while crossbred wool traded 5 to 15ac higher. Cardings remained stable but favoured sellers at various points during the three-day auction week. A 1.2 per cent weaker Australian dollar (Au$) against the USD and CNY failed to revitalise the market but helped cushion it slightly as buyers assessed new price levels.

New season wools show promising quality improvements due to drier conditions. The return to traditional bright and white wools is notable, as is the reduction in vegetable matter content. However, deteriorating climactic conditions in wool-growing regions could hinder future yields, the Australian Wool Innovation Limited (AWI) said in its commentary for sale week 13 of the ongoing Australian wool marketing season.

Wool types finer than 18.6 microns are becoming the focus in auctions, with Chinese manufacturers showing strong interest, especially in ultra-fine segments. Traders topped the purchase lists for merinos, but Chinese buyers increased their share as prices dipped, the AWI commentary added.

Around 39,000 bales are set to go under the hammer next week in a nationwide auction.

Fibre2Fashion News Desk (KD)

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