Australian wool market opens with mixed signals.

The Australian wool market reopened this week after a three-week break, with a mix of positive and negative factors. While exporters reported increased business opportunities, the stronger Australian dollar against the US dollar hindered consistent volume of new contracts needed to stabilize the market.

Despite the large supply and a further strengthening of Australian dollar, wool prices in US dollar saw an overall increase. This was due to improved sales opportunities and better-financed buyers capitalizing on the stronger US dollar purchasing power.

The market showed a slight decline, with prices 10 Australian cents lower than the final sale before the break. However, the strong competition was a positive sign. Highlights of the week included the significant volume of non-mulesed certified sale lots, which attracted premiums due to their ethical appeal. Lots accompanied by Responsible Wool Standard certifications also attracted higher prices.

China's top wool makers were notably active, purchasing nearly 30 per cent of the Merino fleece on offer. The four largest buyers in each type sector accounted for over half of all bales auctioned.