Aussie wool market weathers currency storm.

The Australian wool market surprised many. Despite wild swings in exchange rates, prices only dipped slightly. A strong showing from carding wool and strategic buying helped the market stay afloat. The Australian dollar's weakness against major currencies could have hurt wool growers, but the market adapted. Prices for Merino fleece and skirtings fell but carding wool gained a bit.

The key indicator, the Eastern Market Indicator (EMI) dipped initially but bounced back by week's end, helped by strong buying in Western Australia. This suggests the market adapted to the currency fluctuations rather than panicking.

Strategic buying emerged as a key theme. It wasn't a freefall, but a calculated adjustment. A large Chinese buyer returning to the market also boosted confidence. China's dominance continues. Over 85 per cent of Australian wool now heads to China, highlighting their critical role. Nearly all wool is exported raw, showcasing global demand for the natural fiber. The busy week ahead will see almost 50,000 bales offered before the Easter break.