In a recent turn of events, Australian wool auctions observed a moderate dip in prices, compared to last week's high levels. Market experts suggest that the stronger Australian dollar (AU$) against major trading currencies is a major factor in this downward trend. On the brighter side, the European and Indian buyers remained actively involved in the auction rooms, focusing particularly on new season specialty super fine wools.

The Western market in Australia took a bigger hit, falling below the forex losses, potentially indicating a slow-down in prompt demand and shipment requirements. Local trading exporters led the buying, but their Chinese counterparts remained selective, especially within the merino sector, the Australian Wool Innovation Limited (AWI) said in its commentary for sale week 12 of the ongoing Australian wool marketing season.

Handy premiums ranging from 130/160ac were available for wool meeting stringent testing and visual standards, with even higher premiums (+240 to +300) for those meeting Non-Mulesed (NM) conditions. In contrast, the Merino wool sector observed a decrease of about 15ac by the end of the selling period in the two eastern selling centres, while the Western Australian auctions saw losses up to 45ac, the AWI commentary added.

The Nanjing Wool Market Conference, set for this weekend, marks the first significant face-to-face trade event since the Covid outbreak. Around 40,000 bales are scheduled for sale next week across Melbourne, Sydney, and Fremantle.

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Fibre2Fashion News Desk (KD)