Large volumes on offer ultimately failed to push prices lower at this week’s Australian wool auctions. Whilst a few minor adjustments occurred within type sectors, the general result was the market held values, despite the widely held pre-sale thoughts that prices would struggle to hold and would be in an easing mode throughout selling. 

The Eastern Market Indicator (EMI) finished just 2ac lower to 1420ac/clean kg. The Western Market Indicator (WMI) though was 8ac higher for the week at 1451ac/clean kg. In hindsight, it appeared that auction prices at that centre had dipped too low compared the East at the previous weeks close. In USD terms the EMI behaved almost identically to the AUD and was just 1usc lower by the close of selling at 1018 usc/clean kg.

As was predicted by many of the trade participants, auction sales did start out the series on a very weak note . The first day of selling saw prices depreciate. The generally cautious approach to purchasing by sale room operators saw deductions of 15 to 25ac by the end of that first day, but levels in Western Australia defied the trend in the two Eastern centres to be 10ac dearer. 

From the end of that first day, the market regained the losses very nimbly.  70% of the losses had been recovered by the Wednesday close and a further upward push at the standalone sale at Melbourne on Thursday saw a completion of the return to the firm unchanged basis.

Significant buying support this week on the long wools came from the world’s largest top makers. All three were heavily involved and accumulated a good amount of inventory. The two largest Chinese top makers concentrated their efforts on Merino fleece and skirtings, whilst the giant European manufacturer took a good percentage of the crossbred fleece wool types on offer.

Australia’s largest wool trading company also exerted their significant influence across all type sectors as they returned to the market in force. All other sections were active, but it was a week whereby the big guns and their finance capabilities dominated the large volumes on offer. 

Next week has 50,000 bales on offer Tuesday through till Thursday.