Extraordinary gains were seen at this week’s Australian auctions. The positive sentiment and subsequent competition introduced into the wool market since the New Year escalated considerably to become almost frantic. The majority of buyers were full of confidence and attacked the offering across the entire spectrum of wool types. Every type available recorded strong gains.   

The Eastern Market Indicator (EMI) closed the week 7.4% higher at 1291ac reaching the levels of the initial COVID-19 induced market fall of April 2020.  In USD, the EMI gain was less due to the AUD v USD rate dropping 2%, but still managed a 5.5% rise to 985usc clean/kg. Due to currency movements as well as the market, the USD EMI is now just 50usc short of recovering all of the pandemic caused losses.

The week’s hive of activity in sale rooms came about due to traders and their Chinese counterparts. Healthy bids were being received pre sale above ruling market rates and this quickly converted to instant and swift market rises. As sales proceeded on Wednesday, this call for new business followed the market up injecting further impetus onto the gains. 

The week to week comparison showed all Merino fleece and skirting types were 85ac dearer generally. Crossbred types fared even better on a percentage basis and added 70ac as cardings experienced gains to the order of 40ac. A smaller volume of 40,000 bales helped the markets fortune but demand from new forward and relatively prompt shipment orders were key.

It was not all positive for the week though, as a definite pull back started in the Eastern selling centres towards the conclusion of auctions and was quickly exacerbated by results in the last to sell market of Western Australia. At the close of the selling week prices across most sectors had fallen between 30 and 80ac in WA, with the 21 micron types most affected.

47,000 bales is rostered for next over two days, Tuesday and Wednesday.