The opening week at the Australian wool auctions of the 2022 New Year produced gains in values on all wool types and descriptions on offer. The market started on a firm to dearer footing and kept to that dearer pattern throughout selling, and in fact, closed at the highest point of the week. Whilst the Merino fleece led the upward charge, the skirting, crossbred and carding types all enjoyed positive gains as well. 

The Eastern Market Indicator (EMI) shot 31ac higher to the 1389ac/clean kg level, which is a 2.3% addition to the pre New year wool prices. In USD terms the EMI accelerated way above the AUD levels as the forex rates (of all) currencies added export value. The USD EMI gained 47usc to 1013usc/clean kg and the Western Market Indicator (WMI) added 31ac to 1439ac/clean kg. 

From the outset of selling, buyers were intent on inventory rebuilding following on from the three week break in sales. The local traders in particular were exuding confidence and this showed in the way they were absorbing relatively large volumes of wool at current and indeed, at the ensuing higher values that eventuated due to the week’s auction competition.  

Support to the market was also evident from Chinese top-making and indent operators, but in most instances, those parties were simply out-muscled in bidding this week by local exporters. European top maker interest was strong upon the crossbred wool types, with a large majority of the better wools in that type sector heading that way.

Merino fleece wools were all 35 to 70ac dearer, with the largest gains made on the sub 17.5 micron wools. Better lighter VM (vegetable matter) skirtings were well sought to be 40ac dearer, but all other lots in that category received 10/20ac rises. Crossbred wools and cardings were 15 to 30ac dearer with Euro interest (xbd) and local processor (card) dominant.

Sales next week are scheduled for around 47,500 bales to be offered, with Melbourne featuring a three day sale series again.