Wool is sold by auction in Australia. The unique properties of wool make it a very desirable fibre for many end products and companies around the world bid against one another for the available wool.
Similarly, top quality sheepskins are in high demand, forcing higher prices for the end customer.
Week ending Feb 17, 2017 “Record highs ended the week at Australian wool auction markets during a series that saw prices resisting adverse currency fluctuations and initial reticence by overseas bidders to pay higher levels. Most types were in the super-fine Merino segment. Prices were all quoted as being dearer for wools finer than 18 micron and slightly off the boil for 18.5 and broader. “