Australian wool auctions produced gains once more across all types and descriptions. Selling over a Wednesday/Thursday rotation to accommodate the Chinese New Year on Tuesday, the market pushed upward from the outset following on from strong trader reports of escalating interest and price levels emanating from China. Some commentary pointed to traders being unable to commit to all of the new business available so indents were expected to be an additional positive influence on price outcomes. 

Indian and European contracts remained outstanding and additional business also became available from those areas. First stage processors were interested on all types and as such, a highly competitive market ensued. All buying sectors from all global destinations were active and the resultant market was one of the keenest and hard-fought weekly auction series seen for some time.

The Eastern Market Indicator (EMI) concluded this week 42ac or 3% higher to close at a season high of 1449ac/clean kg.  In fact the AUD EMI finally pushed above the market basis of March 2020 which was the start of the negative covid impact upon wool markets. In USD terms the EMI went 0.5 of a percent higher, as the AUD forex rate recovered against the USD.  The USD EMI finished at 1032 usc/clean kg, a 3.5% gain.

The Western Market Indicator (WMI) gained  37ac for the week and closed at 1492ac/clean kg, but interestingly the last day saw a pull back of 10 to 20ac on most of the Merino fleece offering which was in stark contrast to the rises in the East posted earlier that day.

Merino fleece and skirting types traded generally 40 to 60ac higher with better specified wools finer than 19micron verging on 100ac dearer on an individual lot basis. Crossbred wool and carding types traded 25ac dearer. Traders and indent operators dominated buyers lists with European interest on better crossbred types assisting price gains on that sector

Next week sees 48,000 bales to be offered on Tuesday and Wednesday.