The Australian wool market was again heavily influenced by currency fluctuations this week, with a strengthening Australian dollar making purchases more expensive for exporters when converted to US dollars.
This shift in exchange rates was quickly reflected in market behaviour and buyer sentiment.
Typically, a quieter time of year, the national offering dropped to 28,508 bales, the second smallest sale of the current season.
Difficult seasonal conditions continue to affect large areas across the country. Ongoing dry weather and a lack of rainfall have contributed to dusty growing environments, which in turn are reducing fleece yields and negatively impacting wool style and quality.
AWEX classifies wool into seven style categories, ranging from 1 (choice) to 7 (inferior).
Most Australian wool is usually graded within style categories 3 and 5. Over the past 4 to 6 weeks however, there has been a clear increase in the number of sale lots assessed as style 6 and 7. This decline in style quality has been particularly noticeable in the Southern and Western selling centres.
In the Southern region, only 1 per cent(pc) of fleece offerings were classified as style 6 or 7 in the final sale of 2024. That figure has now grown to 15pc.
In the Western region, the proportion has risen sharply from 2pc in December to 23pc this week. Traders are finding it increasingly difficult to integrate these lower style wools into existing orders, which is placing further downward pressure on the market.
AWEX Micron Price Guides (MPGs), which are calculated using only wool of style 5 and above, showed mixed results. Movements ranged from a 43 cent fall for 17.5 micron MPG in the South to a 15 cent gain for 18.0 micron MPG in the West.
The Western market also saw firm demand for 19.0 micron and finer wools, offering some much needed stability.
Table showing wool prices to 8 May 2025
Graph showing Eastern Market Indicator (EMI) to 8 May 2025
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The information contained in this article is given for the purpose of providing general information only, and while Elders has exercised reasonable care, skill and diligence in its preparation, many factors (including environmental and seasonal) can impact its accuracy and currency. Accordingly, the information should not be relied upon under any circumstances and Elders assumes no liability for any loss consequently suffered. If you would like to speak to someone for tailored advice relating to any of the matters referred to in this article, please contact Elders.