Australian wool market remains steady following recess

Despite the large volume on offer and further strengthening of the AUD against the USD, wool prices in USD saw an overall increase. This price rise reflects slightly improved sales opportunities and better-financed buyers, with many taking advantage of the strengthened USD buying power, the Australian Wool Innovation (AWI) said in its commentary for week 8 of the current wool marketing season.

The market results showed a slight dip, with levels 10 Australian cents (ac) or around 1 per cent lower than the final sale before the break. While this decrease was somewhat disappointing, the strength of the competition was a positive sign. The market in Fremantle also showed resilience, ending the week on a higher note with the Western Market Indicator (WMI) gaining 5ac.

Highlights of the week included the significant volume of NM (non-mulesed) certified sale lots, which attracted premiums ranging from 15ac to 40ac, depending on quality and micron. Even higher prices were achieved for NM lots accompanied by Responsible Wool Standard (RWS) or equivalent certifications, the AWI commentary added.

China’s two largest top makers were notably active, purchasing nearly 30 per cent of the Merino fleece on offer. Additionally, the four largest buyers in each type sector accounted for nearly or over half of all bales auctioned. Looking ahead, next week is expected to see a similar volume of 42,000 bales go under the hammer.

Fibre2Fashion News Desk (KD)