This weeks’ Australian wool auctions featured a good selection of super fine Merino wools 18.5 mic and finer grown in Tasmania and sold in Melbourne. The stylish offering received excellent support from the trade and helped the Southern price indicators extend above all other centres and be upwards of up to 45ac dearer for the week.

The Eastern Market Indicator (EMI) closed the week 0.78% or 10ac lower at 1275ac clean/kg which was largely all currency related as the AUD strengthened against the USD by 1.6%.  The USD EMI was 8usc or 0.8% higher to close the week at 986usc clean/kg.  

Despite the appetite for new business being more selective from China this week, the market held on and improved across many wool types, against the pre-sale expectations of a potential softening. The relatively larger volumes available for sale continue but failed to dampen buyer enthusiasm. Traders dominated at the top of the buyer lists, but top makers and processors were competitive throughout. Indent operators also contributed in a week that seemed to interest all buying companies globally. 

Wool markets appear to be moving towards more of the “normal”, pre-pandemic economy levels and their associated expected patterns. Italian buying was very apparent as the quality of wool suitable for their high end needs became available. Purchasing from the large European top maker continues. Additionally, smatterings of orders destined for the sub-continent provided good support, but it is still very much the Chinese domestic manufacturing and consumption market that is providing the backbone to the Australian wool price.

Merino wools finer than 20micron registered gains of 5 to 10ac with a 15ac fall on broader Merino types. A somewhat abnormally high price gap of over 200ac between 19.5mic and 21.0mic is now apparent. Skirtings sold reasonably well but were cheapening at the broader end. Cardings were 10 to 15ac lower and crossbred wools also drifted away under lack of general interest by 35ac.

The Auction rosters sees almost 49,000 bales available again next week.