Following on from a very conservative start to the Australian wool auctions this week came a concerted push in the market. All types and descriptions on offer came under much stronger buyer attention on the final day which forced prices upwards.

The Eastern Market Indicator (EMI) concluded this week at 1407ac/clean kg, which was an 15ac or 1.1% rise. In USD terms the EMI went in the reverse direction as the AUD forex rate depreciated substantially (2.2%) against the USD. As such the USD EMI closed 12usc or 1.1% lower at 996usc/clean kg. 

The Western Market Indicator (WMI) gained a strong 19ac for the week and finished at 1455ac/clean kg, as all Merino fleece and skirting types offered were generally 20 to 40ac dearer. A good clearance rate of over 91% was achieved within those type sectors.

It was mainly Euro and sub continent interest that sparked the initial gains of 2022, but the latter parts of this week saw China return to the fore. Relatively widespread enquiry and buying interest emanated from that nation causing additional values to be placed on all wool. The competing destinations all remained active at auction though which made the competitive environment even more intense.

The day off for Australia Day impacted positively on the week’s operations, with a stark contrast in market fortunes registered pre and post the Wednesday recess. Overall market values actually struggled to hold on the first day’s selling - apart from the super fine Merino types - which continued to forge upward. Thursday sold in complete juxtaposition to Tuesday as all Merino wools shot 30ac dearer, cardings upwards of 10ac dearer and crossbred wool types 5 to 10ac higher. 

Traders continue to dominate buyers lists, but the first stage processors are pushing higher up the lists each week. Finance terms locally available from  Australian based exporters is considered more favourable than the “term costs” from within China. Many users are choosing to use that exporter option, which is particularly relevant as access to competitive finance and delivery delays are more likely for a while yet.

Shipping issues remain under the keen focus of exporters as scheduled sailings of vessels are an increasingly wildcard factor in executing contracts. Delays at ports and dumps are leading to a longer lead time required to meet those delivery and letter of credit (L/C) requirements.  

Next week sees a schedule of around 42,000 bales to be offered, with a roster of Wednesday and Thursday scheduled to allow our vital Chinese industry partners the opportunity to have Tuesday free to celebrate their New Year.