Wool Brokers

Wool brokers are commonly known as wool selling brokers, because of their role in the wool market. There are some points of similarity between wool brokers and stock brokers. While stock brokers deal with buying and selling stocks, wool brokers are dedicated to buying and selling wool. During stocks and wool transactions, both types of brokers have certain fees paid to them. Wool brokers can act as wool selling brokers or wool futures brokers. Wool selling brokers work closely with the Australian Wool Exchange (AWEX), while wool futures brokers work closely with the Australian Securities Exchange. While wool futures brokers are important to the wool market, it is the wool selling brokers who play the more significant role. For this reason, this article will focus on the wool selling broker.

Wool brokers act as the middlemen in the wool market. Basically, wool brokers provide services to woolgrowers who want to sell their wool through the market. Woolgrowers grow wool on their farms and contact wool brokers when the product is ready. The product can come to wool brokers in either raw form (referred to as greasy wool) or semi processed form. Semi processed wool can be scoured wool, carbonised wool or tops. Scoured wool is only partially cleaned of dust and grease. To produce carbonised wool, vegetable matter is used to clean the wool. Tops are the cleanest form of wool sold by stock brokers.

Wool brokers normally receive wool in bales. Upon receiving the wool, wool brokers take samples for testing and quality control. After testing, the wool is catalogued and stored in the wool brokers' warehouses. There are three ways that wool brokers can sell their stocks of wool. First is through the AWEX. The AWEX holds open outcry auctions for selling wool. The second method of selling is through private buying. Wool brokers can sell to private buyers if the opportunity arises, but many wool brokers only deal with large scale selling. Another method is through export trade. Wool brokers can work with export trade to export wool to other countries.

There are numerous reasons for woolgrowers to hire wool brokers. One great advantage is that wool brokers can offer advice on wool market. Likewise, advise can come in the form of how to market and sell the grower's wool. Wool brokers also allow woolgrowers convenient access to a larger domestic and international market. This can lead to better returns for the grower.