Australian wool auction markets staged a significant rally in prices this week across all types and descriptions, backing up the good demand signals exhibited on the final sales day last week.
This strong and competitive market situation was supported by a much lighter volume of bales on offer, particularly strong indent orders from one of the larger Chinese operators and forward selling exporters keen to execute orders prior to the Chinese shutdown over their New Year period. Buying interest from Europe and India continues to add valuable support to the market.
The AUD:USD exchange rate continues to sit around 88 cents and traded in a relatively narrow band of around 60 points during the selling period. It appears these days, the stability of the exchange, rather than the rate of exchange, assists the wool markets more as far as confidence is concerned.
Click here to access AWI's Wool Market Weekly Report (pdf 1019Kb).