Australian wool auctions witness surge amidst currency fluctuations

The week commenced on a robust note, with the Melbourne and Fremantle markets holding steady, while Sydney emerged as an outlier, showcasing an impressive 5 to 15ac increase in almost the entire Merino offering, the Australian Wool Innovation (AWI) said in its commentary for week 46 of the current wool marketing season.

However, not all sectors experienced upward momentum, as cardings across all centres stumbled, witnessing a 10ac decline throughout the initial day of trading. Similarly, crossbreds at the finer end made modest gains, but broader categories saw prices dip by 10ac by the end of the first day.

The tide turned on the second and final day of auctions, with all selling centres reporting higher sale results across a vast majority of wool types. Marginal increases of between 5 to 10ac/clean kg were recorded across Merino, crossbred, and carding sectors. Intense competition characterised the closing stages of the auctions, with buyers exerting pressure to secure their desired lots from the relatively limited offerings available. While Melbourne and Fremantle saw alignment in bulk Merino types by the week's end, Sydney maintained a consistent 10ac premium.

Australian-based exporter traders escalated their purchasing activities, particularly focusing on combing wools across all micron ranges, including Merino and crossbred varieties. Chinese buyers continued to play a pivotal role in supporting the market, both through sale room direct purchases and offshore indent. Despite the unfavourable currency conversion rates, local buyers outpaced their international counterparts, reaffirming their dominance in the market, the AWI commentary added.

Moreover, European manufacturers displayed renewed interest in the crossbred segment, while super fine Merino garnered increased attention, notably in Sydney, where lots fetched prices 30ac higher.

Next week's auctions are poised to feature around 39,000 bales, scheduled for Tuesday and Wednesday.

Fibre2Fashion News Desk (KD)