A comparatively sedate series this week at the Australian wool auctions. Prices realized were largely around established levels and foreign exchange movements were minimal. Consolidation was the key with buyers showing willingness to accumulate inventory but not at the expense of pushing prices further. 

The Eastern Market Indicator (EMI) closed the week 0.5% lower at 1285ac clean/kg and in USD, the EMI was similarly lower by 0.6% and closed at 985usc clean/kg. This week’s slight price falls in both indicators was the first hiccup in the bullish price trend set in place since early December. 

Despite the lowering levels, confidence and good volume orders were still very much apparent in the market. Business opportunities from mainly Chinese interests were renewed and strengthened last Friday and continued well into the early part of selling this week. As the week progressed price sensitivity appeared to have been reached for the time being as one by one buyers retreated to a safer trading environment once their immediate commitments had been satisfied.

Traders led the buying lists once again, although good support from Chinese and European top makers was evident. Indent orders from China were strong on the fleece sector of both Merino and crossbred types whilst processors were dominant for cardings and oddments.

Merino fleece wool started the week 30ac lower but staged somewhat of a comeback to be generally just 5 to 15 lower by week’s end. Skirtings drifted daily and resulted in losses of up to 30ac. Crossbred types fared better by posting gains of 5 to10ac. Cardings reduced by 5 to 10ac.

Interestingly, 33,768 bales more has been sold to the trade this season compared to the same point of last year, up 4.5%. This is in complete juxtaposition to the fresh figures below demonstrating a lesser supply scenario, down 8%. 

Auction rostered volumes continue to rise and the offering next week is expected to reach around 53,000 bales.