How is Australian wool sold?
Australian wool is mainly sold at auction through brokers, with sales held regularly in Sydney, Melbourne and Fremantle. Buyers bid on wool based on detailed test results for fiber diameter, yield and strength.
After shearing, wool is classed in the shearing shed and packed into bales. The bales are sent to wool brokers, who arrange testing and offer the wool at auction on behalf of growers.
Samples are tested by laboratories to measure fiber diameter, clean wool yield, staple length and strength. Fine wool, measured in microns, usually sells for higher prices because it is softer.
The auction system
Wool auctions are conducted under the rules of the Australian Wool Exchange, known as AWEX. Buyers representing exporters and processors bid in open-cry auctions, and the results are combined into a daily market indicator.
Most Australian wool is exported, with China as the largest buyer. There it is scoured, spun and woven into fabrics for clothing manufactured around the world.
Wool can also be sold privately or through online platforms, but auctions remain the main method. Wool prices are closely watched by farmers because they can change significantly with global demand and fashion trends.
Did You Know?
Australia produces a large share of the world's fine merino wool used for apparel.