Fashion
Australian wool market shows resilience amid currency headwinds
The Australian dollar climbed above US 72 cents for the first time since 2022 following the Reserve Bank of Australia’s interest rate hike and continued weakness in the US dollar. The stronger currency created headwinds for local wool prices, though the broader market tone stayed positive.
Fine Merino wool types between 16.5 and 19 microns slipped 10-15 Australian cents, while medium Merinos in the 19.5-21 microns range fell 20-25 cents. Meanwhile, crossbred wool categories from 26 to 32 microns rose 10-15 cents and Merino cardings gained 15-20 cents across selling centres.
The Australian wool market remained resilient this week despite pressure from a stronger Australian dollar, which weighed on local currency returns.
While the Eastern and Western Market Indicators recorded slight declines in AUD terms, both posted gains in US dollar terms.
Firmer crossbred wool prices, stronger Merino cardings, and selective buyer demand helped support overall market sentiment.
Industry observers noted firm demand for crossbred and oddments sectors, supported by interest in blended fibre applications and woollen-spinning inputs as processors looked for comparatively lower-cost raw materials amid ongoing macroeconomic uncertainty.
Lower-style Merino fleece types continued to face subdued demand, reflecting selective buying patterns focused on fibre quality, processing efficiency, and consistency as manufacturing margins remain under pressure.
Weekly auction offerings fell to 33,055 bales, while next week’s roster is expected to decline further to 31,329 bales. Fremantle will hold a Tuesday-only auction, while Sydney and Melbourne will conduct sales across Tuesday and Wednesday.
Fibre2Fashion News Desk (CG)