Australian wool auctions witness robust sales & surging prices

The superfine merino categories, crossbred wool types, and cardings also fetched higher prices, with the superfine categories adding a significant 20ac clean/kg. Meanwhile, changes in forex rates, primarily AUD versus USD, escalated the CIF (cost, insurance, and freight) prices, the Australian Wool Innovation Limited (AWI) said in its commentary for sale week 2 of the ongoing Australian wool marketing season.

Customers who initially hesitated to follow last week's price gains committed to the new levels, especially those needing immediate supply. Those requiring wool for new contracts post the three-week auction recess will now have to adhere to the closing spot price.

Local traders largely drove the wool value increases over the past two weeks. They closed open forward books for July and August shipments and engaged in new business inquiries. This prompted exporters to ‘average’ old and new contract prices, thereby limiting potential losses due to the rise in wool prices, the AWI commentary added.

Although not absent from the buyers' list, direct China top maker buyers were compelled to accept higher prices to secure supply through the sales break. Despite this, they are likely to benefit from a 5 per cent value addition to their output compared to a week ago.

Wool auction sales will be on break until the week starting Monday, August 7, 2023.

Fibre2Fashion News Desk (KD)