Overall, a minor lowering of prices occurred this week at the Australian wool auctions, but some individual types in the Merino sector were more effected. The crossbred wool types on offer did quite well though with some small gains placed on most sale lots. Over 22% of this week’s bales were of the crossbred type wools. 

Following on from last week’s large (seller friendly) foreign exchange movements, the market was somewhat dampened this week by the stronger AUD which did go over 0.66 and was largely above last week’s rates during selling

Whilst China remains the dominant importer and buyer of Australian wool, demand and general consumption in that nation is somewhat subdued, particularly in the weaving sector. The cold snap during December 2023 in China though saw a large spike for sweaters (knitwear) at retail and larger than normal sales figures were recorded.

The Merino sector of 18.5 to 19.5 micron saw 25ac cheaper levels being achieved. At the finest end of the micron spectrum, the few sale lots of Merino wools finer than 17 micron had prices 60ac lower as European activity remains sporadic and other destinations are adjusting to the availability of these better types. 

In what is becoming a lowering volume area of the Australian Merino clip, the wools broader than 20 micron held on well and were largely unchanged to just 5/10ac cheaper this week. The fine and medium wools of 20.6 to 23.5 micron account for just 12% of the tested wools for the first half of the 2023/24 season.

Passed in rates at auction this week approached the 10% mark, which indicates a trend towards grower sellers holding onto some of their clip as prices lower, particularly Merino fleece in both the Melbourne (11.6% passed in) and Fremantle (21% passed in). Again, two of China’s largest top makers featured at the top of buyer’s lists with solid support from trader exporters. 

Next week will sell just 2 days Tues/Wed with just 36,000 bales offered