The dearer trend continued at this weeks Australian wool auctions as Merino combing types of all qualities came under intense buyer interest. This week differed though in that it was the fine to medium (18.6 micron and broader) sector that led the charge and produced the largest gains of up to 60ac. In a lot of cases it was the lower end of the type spectrum that extracted the most gains as buyers scrambled for “anything cheap” as the market gained momentum steadily throughout and moved further away from starting levels.  

The Eastern Market Indicator (EMI) closed the week 30ac or 2.3% higher at 1342ac clean/kg. In what has become a bit of an anomaly the past few years, as the AUD strengthens against the USD, so has the local market in AUD. The USD closed at 1046usc/clean kg which was  3.4% higher for the week.

The evidence of buying interest from outside of China last week became even more relevant this series and that interest assisted in pushing the market to higher levels. Almost all the major sub continent and European destinations were active and provided a largely unanticipated level of stronger competition to the various Chinese mills than has been seen for some time. 

Chinese purchasers remain very much our dominant wool trading partner though. As prices ascended, the active Chinese parties augmented their inventory to ensure supply and insure against the likelihood of wool getting dearer. The Chinese nation has been a remarkably resilient customer for the past year or more and has been almost solely responsible for the continued improvement of Australian wool prices since the Covid induced falls of early 2020.

Merino fleece and skirtings finer than 18.5 micron gained 35ac for the week. All Merino wools broader than 18.5 micron were 40 to 60ac dearer and came under concentrated buyer attention. Cardings shifted upward by a 10 to 20ac margin. Crossbreds struggled somewhat and prices were barely maintained.

The bales sold so far this season surpassed last seasons entire total this week, with 8 sales remaining. Over 48,000 bales is being offered to sell next week.