By the close of this week’s Australian wool auctions, losses were again recorded on general indicators. Lower wool values to the magnitude of 20 to 40ac across the Merino type spectrum were recorded and 10 to 20ac lower prices were available from buyers for the carding and crossbred wool types. The passed in rate lifted to 20% of the offering this week with one in five bales failing to meet woolgrower sellers price expectations. 

The Eastern Market Indicator (EMI) fell 18ac or 1.3% to close at 1332ac clean/kg for the week. Significantly most of the AUD losses were currency-based as the AUD v USD rate appreciated 1.1% week on week. As such, in USD terms, the EMI dropped far less than the AUD EMI with just a 2usc or 0.2% lower value to finish the week at 978usc clean/kg. 

The Western Market Indicator (WMI) actually gained 5ac for the week to close at 1356ac clean/kg. The Fremantle centre did not offer last week so the gains that occurred in eastern states were not recorded. Subsequently the softer prices on offer in the east were not transferred to the west as just minor adjustments to forex rates were made to the AUD WA pricing.

Not all clips within the offering posted negative returns. In a designated super fine wool sale week, the better prepared and specified spinners and best top making Merino wools achieved similar prices to the season long established values. Those wools sold 175 to 200ac above the general micron indicator quotes. All other types away from these though followed the lower bids down that were available from the overseas users, highlighting the hand to mouth nature of the current trading environment and sensitivity  

The tone and competition that eventuated in the sale rooms was slightly better than anticipated. The local traders and a large Chinese top maker was bearing the purchasing load on most Merino wools. This assisted in keeping any falls to a minimum. Italian interests continue to dominate the better super fine sector.

37,000 bales is currently rostered at all three centres for next week .