The Australian wool auctions saw general price gains this week despite the  Australian dollar continuing to ascend in value against all of the major trading currencies. General gains of 10 to 15ac were recorded on the Merino sector alongside a mediocre 5ac increase in crossbred wool types. Global stocks of those broader wools are slowly moving again, giving some minor confidence that more of that type can find a home at the consumer level. 

Clearance rates remain strong with 89.9% of all wool offered being cleared to the trade. Merino and oddments cleared 90.8% but crossbreds cleared just 86.3% as prices offered in that sector continue their slump.

The Eastern Market Indicator (EMI) received a 6ac (0.4%) boost this week to close at 1413ac/clean kg. The Western Market Indicator (WMI) enjoyed the best of buyer action in that selling centre by moving 13ac or 0.9% higher to 1457ac/clean kg but once again a relatively lower clearance was achieved with 14.8% being held back as seller price expectations were not met. In USD terms the EMI gained 7usc or 0.7% to close at 1034 usc/clean kg.

Many of the buying fraternity, on both sides of the contract, are lamenting that logistics issues are impeding normal business activities. The locals are missing selling/trading opportunities due to delays exceeding well over a month now. This is tightening funds and consequently overseas buyers are unable to get the quantities required fixed at current price levels, so production schedules can be set for the immediate to medium term . 

Demand is reported as being good from all destinations, as Indian and European interests continue to apply strong competition in the auction rooms to the dominant Chinese. Direct buying and offshore derived indent orders from the first stage manufacturing sector is alleviating any funding issues at present as the larger volumes on offer are mainly being sold. This relieves some of the pressures on our local traders to finance all or indeed more of that inventory. 

48,500 bales has been rostered to sell next week with Wednesday and Thursday auctions over those two days.