India and Italy have closed their borders to wool exports from Australia.
Many borders, particularly in Europe, have closed or are shutting down, which prevents the flow of wool from country to country and creates uncertainty among wool buyers.
Demand in Australia prior to COVID-19 was already waning due to the lack of consumer and retailer confidence, which was no different to many other parts of the world.
Rodwells agent Michael Baker said “credit required to buy wool at the moment is having an effect on the ability of wool buyers to purchase day to day.”
“Many countries were currently looking at buying necessities rather than luxury items, which wool falls under,” Mr Baker said.
The future of wool market prices is unknown, and large stockpiles of wool have been left unsold.
At Rodwells’ weekly sale, the original offering of 46 000 bales was reduced to 37 000 bales, as growers withdrew significant volumes prior to sale.
The passed-in rate exceeded 30 per cent, as brokers were unable to adjust reserves fast enough.
Agent Lizzy Chen, based in China, said the mills were up and running but demand for wool in China was at its lowest point.
“It depends on coronavirus, if the virus is still there the Australian dollar would still be low — if I were a grower, I’d keep my wool until the whole situation is over,” she said.
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