A casual or perfunctory glance at wool auction results this week reveals all. Not much change was evident, but a very strong and widespread bidding atmosphere was present. This helped consolidate the gains of the past few weeks. Overall, it was a very solid market and all reports were stating firm unchanged to sellers favour throughout the week’s selling activity. 

The Eastern Market Indicator (EMI)  finished at 1346ac/clean kg which was a 5ac weekly advance. The Western Market Indicator (WMI) moved upwards by 4ac to 1404ac/clean kg. The continuation of the weaker forex rate of the Australian dollar (AUD) versus the US dollar (USD) helped overseas users once more and despite the dearer local price, the USD EMI dropped 2usc to 965usc/clean kg. During the week though, the AUD/USD rate was even lower allowing for cheaper buy-in levels than the closing USD quotes. 

China’s first stage manufacturers kept their recent buying pressure on and strongly influenced the auction competition. This forced traders and indent buyers to up their ante as far as quantity obtained. New business opportunities to exporters was available, but was described as being very sporadic, limited in volume - mostly a negotiation from what both the overseas buyer wants and what the seller is prepared to commit to - and very price sensitive.

The ongoing issues with international logistics is a large contributor to market outcomes at present. The shipping situation is unpredictable at best. Vessels booked may arrive and sail or be delayed or not arrive at all. Container access and port delays are also playing a negative role. Combine those issues with the upcoming three week recess for Christmas and commercial decisions for local auction buyers become increasingly difficult and greater risk.  

Merino fleece pricing had superfine (<18mic) types selling 10ac better, fine (18.5 to 20.0mic) types firm and medium (>20mic) wools upward of 15ac stronger. Skirtings sold to the sellers favour, cardings remained firm and crossbreds sold 5ac lower.

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