Australian wool auctions this week resulted in price improvements across most of the offering. The week’s purchasing activity featured renewed buying from a large cross section of our first stage manufacturers operating on all wool type sectors. As those entities sought to replenish their raw material supply chains, price support flowed through to selling rooms with some handy price gains in AUD ensuing. A majority of sellers were comfortable with the prices on offer with a subsequent clearance rate of 90.7% being achieved.

The Eastern Market Indicator (EMI) closed 5ac higher (+0.4%) to 1324ac/clean kg. The forex rate of the Australian dollar (AUD) continues to deflate against the US dollar (USD) and a further 1.3% week on week price advantage went to  our overseas based buyers using USD and CNY. Due mainly to that forex rate, the USD EMI fell 9usc or 0.9% to a week’s close of 963usc/clean kg. The Western Market Indicator (WMI) gained 15ac for the week to move up to the 1393ac/clean kg level with 11% of the offering failing to meet seller reserves.  

Trade reports early in the week identified a concentration of offshore clients attention on mainly the broader wool Merino fleece types (greater than 19micron) and a heavier than normal enquiry focussing upon the skirtings and carding wool descriptions. Those reports were ultimately proven accurate, as general gains of 20 to 30ac were achieved within all those sectors. Conversely, the superfine Merino and crossbred segments struggled in comparison to hold their values and some slight price falls eventuated. 

At this point of the current season, there has been 100,444 more bales sold to the trade than at the same time last season. This is an additional 22.5% of weight moving to product. Not only has the volume shifted up, but the value of our wool exports has increased far more with an estimated 180% increase in dollars earned for the first third of the 2021/22 season compared to last.  

The first stage manufacturers came to the fore on all type sectors at this week’s auctions.  Top makers, scourers and carbonizers all featured at or near the top of buyers lists and many of the traders and indent operators orders were also designated to these primary manufacturers.

Next week has 41,000 bales being offered on Tuesday and Wednesday.