Last week’s falls went a long way to being recouped this week at the Australian wool auctions. Price gains were recorded for all wools. Volumes on offer had reduced by 13.9% from last week’s estimates to end up being under 30,000 bales which helped apply positive pressure to the market price on top of the renewed purchasing interest.

The Eastern Market Indicator (EMI) pushed above the 1000ac barrier to close 26ac or 2.6% higher to 1022ac clean/kg. The USD v AUD and other forex rates used in wool trading have been trading in a remarkably narrow range over the past few weeks, having little impact on auction direction. The USD EMI appreciated 2.8% or 20usc to 728usc clean/kg.

Buyer expectations were for a largely unchanged to cheaper prices at the start of the week, but these evaporated as auctions commenced. Sale room operators initially gauged each others intention and quickly realized the buying intent being represented was far better than the soft market predictions. Many stepped up their own purchasing rates, forcing prices steadily higher.  

Merino fleece finer than 19 micron came under the most buying pressure and was not restricted in quality. In fact much of the offering that is usually discounted such as overlong or low nkt (strength) sale lots sold at market rates almost equivalent to the better European specification types. The Merino fleece broader than 19 micron was by no means neglected by pushing 20 to 30ac higher but competition was not as fierce in that sector.

Skirting types had top makers very interested and gained 35ac. Crossbred descriptions added 15ac to their values thanks largely to top makers again, while processors led the modest 5ac gain that was extracted for cardings.

Repeating the buying pattern that has developed over the past few sales, trader interest continued to dominate the Merino fleece sector while first stage manufacturer representatives topped buyers lists on all other types and descriptions. The majority of enquiry and firm interest is emanating out of China, but small pockets of activity from the sub continent and Europe are evident in the market locally.

Next week there is around 30,000 bales rostered to be offered.