What it is
The fleece of sheep, graded by the fineness of its fibre. The finest, from merino sheep, goes into suits and knitwear; coarser wool goes into carpets and upholstery.
How it is usually quoted
Australian cents per kilogram of clean wool.
This is the customary unit of the reference market. Other markets for the same commodity may use another unit or currency, and an exchange can change a contract’s terms: its own rulebook is the authority.
Where the reference contract trades
Auctions in Australia, at Sydney, Melbourne and Fremantle, summarised in a published market indicator.
Named for orientation only. Naming an exchange or a market here does not mean that GIO4X gives access to it.
What commonly moves it
- Demand for wool clothing, and buying by Chinese mills
- Drought and the size of the flock
- The premium paid for finer fibre
- The Australian dollar
- Competition from cotton and synthetic fibres
These are the things people who follow this market usually watch. They explain how the market works; they do not say what the price will do next.
Where it comes from
Australia supplies most of the world’s fine wool. China, New Zealand, South Africa, the United Kingdom, Argentina and Uruguay also produce it.
The order of producers changes from year to year, so no quantities or shares are given here.
At GIO4X
Wool is not offered as a GIO4X instrument. This page is general education about a market that exists elsewhere, and nothing on it means that GIO4X quotes, trades or gives access to it.
The commodities GIO4X does list are Brent crude, gold, natural gas, palladium, platinum, silver and WTI crude.
Words worth knowing
A reference page. Educational information, not investment advice or a recommendation to trade. It gives no price and no forecast.