AWI Commentary on Australian Wool sales 28 March 2025

Following more than a month of price gains at Australian wool auctions, prices realized within the Merino sector saw the leading market indicators slightly downward by the conclusion of sales. All other wool type segments traded on a firm to dearer basis throughout.

The value of the Australian dollar (AUD) against both the US dollar (USD) and Chinese yuan (CNY) went to the favour of local sellers on the week-to-week comparison but wasn’t enough to help stimulate further price rises into the market. The weaker AUD though did assist in cushioning some potentially weaker returns to growers.

Auction sales for the week went very much to the pre-sale expectations of most buying participants. Selling opportunities were available right up to the preceding weekend, but evaporated from Monday onwards. This gave exporter buyers an indication of an upcoming relief in buying pressure so they could maximise returns from forwards booked or to take on inventory for future demand at more predictable rates.

The direct buying companies for first stage manufacturers also recognized the more advantageous auction buying conditions early on Tuesday’s opening and immediately took to picking off volume within the more stable price environment.

A few factors combined to see the market stabilize and trade lower in the major foreign currency (USD). Demand became softer, but auction volumes increasing by 10 to 20% each week from initial 3 week out forecasts plus the make-up of the offering being lower in yields and strength all play their part in the ultimate price determinations.

Crossbred wool types enjoyed the best results of the week and prices all appreciated 5 to 15ac for the week. Cardings sold to the sellers’ favour to 5ac dearer throughout.

Auctions are Tuesday and Wednesday next week offering 41,500 bales.

Source: AWI