Australian wool auctions produced largely positive results this week with around  83% of wools offered selling to improved levels. Merino wools were generally 20 to 30ac dearer, with some better specified, stylish wools and accredited wools gaining 30 to 50ac on top of the already established premiums in the market place. The wools from crossbreds continue to struggle  and were barely firm to 5ac cheaper. A good clearance of 91% was achieved.   

The Eastern Market Indicator (EMI) gained 16ac for the week which was a 1.2% gain to 1368ac clean/kg. Basically half of this appreciation was currency assisted as the AUD continued to cheapen against most currencies. Some of this weakening was due to concerns with significant debt repayments being met in China and also the plummeting Australian iron ore prices into China. These factors continue to spook all markets, with Australia more watchful of the latter. The Western Market Indicator (WMI) put on 5ac to close at 1397ac clean/kg. The USD EMI gained 2usc to 992usc clean/kg. 

The European interest on the Merino fleece and skirting sector was even stronger this week and continues to place price pressure upon competitors. First stage manufacturers were atop buyers lists with over 25% of Merino fleece wool being purchased by just two entities. China’s largest top maker and Europe’s largest top maker were dominant with traders playing just a supporting role as they were out often out muscled by the big two. 

Crossbred wools were hard to sell again this week as weak demand , global supply and large stocks at all stages of the supply chain hamper any growth for the time being. These wools are often used for interior furnishings for hotels, government buildings and transport that until recently have been vacant. Around 17% of this weeks offering was of these types and 15.5% failed to meet the sellers reserves. Cardings sold strongly throughout with purchasing from our local manufacturers pushing prices 25ac higher.

With improved prices this week, next weeks volumes on offer have grown 9% to see 41,500 bales being offered at a Wednesday/Thursday sale series.