Australian wool sale – 31 August 2023 – AWI Commentary

Australian wool sale – 31 August 2023 – AWI Commentary

Pre-sale expectations were for a better week for prices at Australian wool auctions and that was certainly the case upon opening. Almost all categories sold progressively dearer through the first day of selling with the result being wool values closing at 15 to 30ac higher. The tone in the auction rooms was healthy and competition reasonably strong, but notably, two or three of the leading buyers were not getting caught up in the initial flurry of activity. Whilst not sitting out entirely from purchasing, they strategically left the push to others. 

The second and final day of selling was hampered somewhat with the large offering consisting of very similar types in the super fine end of the market. These types are comparatively much harder to sell at the moment than the broader than 18.5micron Merino types. Additionally a stronger AUD against the USD had somewhat stymied the business emanating from mainly China overnight as those Chinese buyers sought to get set, after a few of the Indian interests had contracts fixed for price pre-sale. 

The auctions subsequently lost a little impetus throughout the final day and gave up some of the previous days’ gains. Notably, as prices regressed, those leading buyers returned to the action soaking up the quantity on offer at more advantageous levels. The net result for the week was largely positive though, with most wools closing at levels of 5 to 15ac higher. Most  participants were seemingly pleased that a brighter atmosphere had prevailed after a month of uncertainty and lowering prices. 

The Fremantle (WA) market figures are reflective of the market prices of two weeks ago as they did not operate in last week’s markets which saw considerable falls and adjustments were made this week.

Once again, wool growers  and their seller representatives were largely accepting the prices on offer and a solid 89% was sold and cleared to the trade. After being way lower than last season for the first month on the new selling season, the sold amount of bales for the season is now close to last year’s volume of sold bales at the same point of the season. 

Around 43,000 Australian grown bales is rostered to sell next week.

Source: AWI