Stability of pricing continued to track at this week’s Australian wool auctions. Generally, prices revolved around current levels albeit with some values decreasing on the crossbred sector and positive gains on cardings. Keen competition was seen, but with no real sense of urgency surrounding purchase intent of participants. 

The Eastern Market Indicator (EMI) closed the week just 1ac lower to close at 1310ac clean/kg. The USD EMI dropped 7usc or 0.7% to be 1014usc clean/kg at the close of selling. Significantly the AUD v USD forex rates did dip to the mid 0.76’ during selling which assisted wool prices hold in ac/kg .

The quality of the freshly shorn offering is moving towards more difficult types for buyers to place due to faults such as heavy vegetable matter (vm),  type of vm and cotted wool growing in number. These are all mainly seasonally induced wool faults due to problems surrounding management of the excessive feed in grazing paddocks following the good climactic conditions post drought in most areas.

Large volumes are still being offered at auction, with assistance from growers now trying to off-load their held wools. Many of these wools are drought-produced so many lots are restricted in competition due to the tip to base dust penetration causing low yields (less than 55% dry). VM levels are low on these wools, helping to offset high vm available in the fresh shorn sale lots.

Buyers lists varied greatly in their representations this week. Australia’s largest trading company continued their domination at the top, but some strong competition emerged this week from China’s two largest top makers as both were very active, albeit on separate sale days. Chinese indents were involved  but quite often outbid by the aforementioned. 

Merino fleece and skirtings were unchanged in the Eastern centres but firmed upwards of 20ac in WA. Cardings 20ac up, crossbreds dropped 30ac.

53,000 bales are scheduled to sell for next week.