Following on from the past two weeks of prices drifting down, this weeks’ Australian wool auctions reversed that direction to the positive. Almost all of the Merino sector wools recorded good price gains, with the super fine types finer than 18.5micron coming under the strongest of buyer attention. In spite of the overall enthusiasm, that good sentiment could not be passed through to the crossbred and carding types as both of those market segments struggled to hold onto their established levels. 

The Eastern Market Indicator (EMI) clawed back most of last weeks’ losses and gained 0.7% or 9ac to 1315ac clean/kg. The advance in the USD EMI was greater in magnitude at 1.8% or 18usc to 1025usc/clean kg on the back of the stronger AUD (+1.1%) forex rate against the USD.

Auction sales within the Merino sector were generally very strong and price guides did lift accordingly, but there were differing fortunes within the offerings at the individual lot basis that made the difference. Most of the lifts came about due to the strength of gains made on the FNF (less than 1%vegetable matter - vm) sale lots. This of course relates to the lower quantity available of these FNF wools in the Eastern states due to the robust seasonal conditions in most of our wool growing regions. 

Also indicative of the present demand favouring FNF wools is that the Western Australian (WA) centre significantly out-performed both Eastern centre counterparts in price gains for the week on 19.5micron and finer wools. The WA offering has the largest percentage of these lower vm types available. 

The heavier VM sale lots were by no means neglected at Australian auctions and prices generally held. Just a touch of weakness was apparent but this was mainly due to the high volumes of similarly specified lots up for sale. The discounts for higher VM readings were less harsh as the micron lowered.  

Chinese top makers and indents led the buyers list this week, well supported by the large local traders. Stronger and growing participation was again evident from the largest European top maker. 

46,000 bales is scheduled for next week.