Australian wool auctions experience continued weakness this week

However, enquiries and business for other wool types in the crossbred and carding segments showed relative consistency, albeit without significant abundance in orders. These segments are notably price sensitive as they gradually recover towards normal levels.

Amidst the onset of the Chinese New Year, many factories have opted to shut down completely for a week, and in some cases, two weeks. This absence of key players due to the Spring Festival holiday, observed from February 7 to 16 this year, has impacted operations. Comparable to the Australian Christmas/New Year period, this festival signifies a significant pause in business operations, allowing staff time off, the Australian Wool Innovation (AWI) said in its commentary for week 32 of the current wool marketing season.

Australian exporters took the lead among buyers at the auctions, with larger Chinese manufacturers and indents playing a limited supporting role. Premium buying from Italy was observed in specific clips showcasing exceptional quality, style, and higher curvature readings in wools finer than 19 microns. However, only the highest-quality wools received this support, commanding premiums ranging from 300 to 450ac above standard types of similar micron.

Despite relatively stable prices for 18.5 micron and broader Merino wools throughout the week, they closed slightly lower by 5 to 10ac by week's end. This outcome was partly influenced by the Australian dollar's decline by 0.7 per cent against the USD. Conversely, finer wools than 18.5 microns experienced downward drifts, with most quotes ending approximately 25ac lower by the close of selling. Cardings and crossbred wool types saw a more competitive environment, with small daily gains leading to a closing basis 5/10ac higher for the week, AWI commentary added.

Looking ahead, next week's auctions will span three days, aiming to facilitate the orderly sale of volumes in Melbourne. Meanwhile, Sydney anticipates an unusually low volume sale, offering just over 8,000 bales.

Fibre2Fashion News Desk (KD)