Australian wool auctions see prices softening this week

The absence of the Fremantle (WA) market operating failed to boost prices in the two remaining Eastern centres. Any optimistic thoughts about reduced quantities affecting prices positively were quickly dismissed. Forward estimates for the upcoming weeks are scheduled well above last year's levels, despite the offered and sold quantities at auction being 11.6 per cent and 6 per cent lower, respectively, the Australian Wool Innovation Limited (AWI) said in its commentary for sale week 8 of the ongoing Australian wool marketing season.

One significant shift in this season's market is the willingness of growers and seller representatives to accept the prices being offered. Compared to the same period last year, a higher percentage of wool, 90.3 per cent of what was offered, has exchanged hands.

Chinese top makers and first-stage manufacturers have continued to dominate the buyers' lists, employing a step-down strategy due to cautious competition. This lack of confidence among traders means the new forward and prompt business is currently unable to operate at typical purchasing engagement levels, the AWI commentary added.

In currency news, the Australian dollar (AUD) showed resistance against further erosion of value against the US dollar. Although the weaker forex trend helped mitigate the extent of AUD falls in the past few weeks, this week's market remained similarly weak, without forex supporting AUD prices.

Looking ahead, a large volume of 48,600+ bales is slated to sell next week across the nation.

Fibre2Fashion News Desk (KD)