Wool Bale - Sale of Wool

Sale of Wool

Most Australian wool is sold at auction sales in Sydney, Melbourne, Newcastle, and Fremantle which are conducted by the Australian Wool Exchange (AWEX). There are about 80 brokers and agents throughout Australia.

After transportation by rail or road to the woolbroker’s store, each wool bale’s brand is carefully inspected to see that it corresponds with the classer’s report. It is then weighed by sworn weighers (this weight is marked on the bale and recorded and is the basis on which buyers are invoiced), and then core sampled. This sample will then be tested for micron, yield and vegetable matter as a minimum. Wool that is to be sold by sample has a minimum of one grab, of a specified weight, taken from each bale and a minimum of 20 grabs, from each lot. Specialty wool is often traditionally displayed in original wool bales with the test results displayed. Wool not sold by the traditional display system will be directed to various parts in the warehouse for stacking and storing. An index is maintained showing the location of all bales so that, when their turn of offering-which is based on the equitable method of order of receipt into store approaches, they may be easily found.

The sale's programme in all centres is arranged, in the first place, by the National Council of Wool Selling Brokers after consultation with the buyers' organisations. Later, state allocation committees attend to details, such as individual sale dates and the quantity of wool to be offered by each broker in each series of sales at the centres concerned.

The traditionally displayed bales of wool on the floor are opened for examination by the brokers, buyers and wool growers. The sale by sample lots will have their grab samples displayed in boxes across the show floor. Catalogues are prepared by the woolbroker which list all test and other details of each lot of wool.

A valuation of every lot, based on current market rates, is also made by the brokers' staff, this being used by the growers as a guideline for the subsequent auction. The lots are sold by nominating each lot in turn and it is sold by open cry auction.

After the wool is sold at auction the bales are usually “dumped” i.e. compressed to a higher density, still in the original wool bale, for shipment to overseas mills. Three bales that have been dumped and secured with a metal band are known as a “tri pack”.