Australian Wool Market sales – AWI Commentary 27 September 2024

Wool prices lowered by an average 1% at this week’s Australian wool auctions when measured in the Australian dollar (AUD) Eastern Market Indicator (EMI). Whilst significant in itself, those  results may have been far worse given the AUD strengthened by 1.8% against the US dollar from week to week. Helping out also has been the well managed lower supply hitting the auction sale catalogues by brokers, keen to play their part in these unknown and softer demand conditions.

The price retractions were felt hardest within the Merino fleece sector with all micron segments stepping down by 15 to 30ac/clean kg for the week. By selling all of the offering on one day, the Western Australian prices of Merino fleece had more minimal falls to the order of 10 to 15ac/clean kg by the close of their selling. 

The carding types told a different story. This sector has somewhat struggled the most the past few months, with interest for new business hard to come by. The carbonizing sector has been particularly quiet. This seemed to change this week, with many exporters able to write some handy new contracts for the shorter wools. This may help dispose of some of expensive stocks on hand and lessen the potential losses there. 

The finer crossbred wool types were a general 15ac/clean kg lower, but the minimal volume on offer of broader than 30micron wools met better competition and managed to place 5 to 10ac/clean kg value to the growers returns.

The markets largely matched the reported sentiment emanating out of Puyuan, Zhejiang China where the 35th edition of the annual Nanjing Wool market conference was held. The general reports had room 1 types (Merino fleece) tough to sell anywhere near the correct price, whilst all other wools (Room2 types) were easily disposed of if the stocks held matched the types being wanted. As is often the case, the type descriptions were all very similar in the length, colour and micron ranges required. 

The top two Chinese top makers dominated volume buying but were strongly competed against by the top two locally based trading exporters.

Next week sees 32,000 Australian stored bales rostered. WA selling one day Tuesday with the Eastern centres operating Tuesday and Wednesday.

Source: AWI