Substantial price gains were achieved this week at Australian wool auctions. The Fremantle selling centre was in recess for the week so it was left to just Melbourne and Sydney to provide the action. The competition was intense from the outset amidst an atmosphere that was buoyant to say the least.  All types and descriptions on offer had their values improve, with some individual areas over 5% dearer for the series.

The Eastern Market Indicator (EMI) gained 50ac to 1393ac clean/kg, a 3.7% average gain for the clip in Australian dollar terms (AUD). A remarkably stable AUD:USD forex pair saw the same percentage gain in the USD values and the EMI expressed in that currency climbed to 1078usc clean/kg which was 38usc higher. 

The level where the EMI settled at the end of this week in US dollars terms is the first time since the pandemic cast its dampener on the wool market that pre COVID-19 levels have been matched.  The USD EMI is at its highest point since mid January 2020 when the market was 1082usc. In reality though the USD values are as strong as any point in time over the past 2 years, with just 5 weeks since July 2019 having a higher closing USD value. 

The more widespread interest that has become apparent from buyer’s outside China over the past few weeks were still active this week, but it was the Chinese indents that came to the fore alongside the local exporters trading to China. Apart from the crossbred sector, which was dominated by the largest European top maker, Chinese purchasing determined the price movements, and it was all to the positive. 

Merino fleece and skirtings at the finest end (less than 18mic) of the selection spiked over 100ac dearer for the week which represented a 4.5% lift but it was the 75ac gains on 19.5mic and 20mic wools that out-performed all others by advancing to levels over 5% dearer. Similarly, crossbred types rose 5.2% on average but those wool prices are coming off a very low basis and the gain was just 23ac on average. Cardings gained 30ac or 3%. 

Over 45,000 bales is on offer next week at all 3 selling centres.