Wool markets show divergent trends in Australia and the UK

The global wool market is showing divergent trends between Australia and the United Kingdom. In Australia, prices fell this week as sellers remained hesitant to part with stock at current market levels. The Australian Dollar depreciated 1.9% following the Reserve Bank of Australia's decision to raise the cash rate to 4.6%, a move influenced by shifting tones regarding future rate hikes and lower-than-expected inflation data.

Conversely, the British wool market is experiencing a significant recovery. British Wool reported average auction prices of £1.70/kg across its first four sales, which is 70p/kg higher than the same period last year. The National Sheep Association noted that this recovery is vital for farmers who have faced challenges from wildfires and disease. Projections suggest the 2026 clip could see core types paying more than £1/kg, providing much-needed financial relief to sheep farmers.