A very mixed sentiment selling week at the Australian wool auctions saw prices hover around established levels once more, although some weak indicators became apparent on the final day. Merino types generally held in Eastern markets but in WA those levels deteriorated by 15 to 20ac on the final day. Additionally the small rally that had appeared the past few weeks on the crossbred wool descriptions appeared to hit a road block for the time being and prices had fallen by 20ac by the conclusion of the selling week.

Passed in rates remained similar but trending towards a higher retention by sellers figure. Around 88% of all wool offered was cleared to the trade nationally although that rate dropped significantly in Fremantle whereby just 78.2% of wool offered met the grower seller expectations. Another stand out figure was that 23.5% of crossbred wool types offered in Sydney failed to sell. 

The Eastern Market Indicator (EMI) dropped 5ac (-0.4%) this week to settle at 1408 ac/clean kg. The Western Market Indicator (WMI) fared comparatively worse as that selling centre sold last when the AUD was at its strongest point for the week. The WMI subsequently fell away 11ac to 1446 ac/clean kg. In USD terms the EMI fell 4usc to a closing basis of 1030 usc/clean kg.

Despite the much reported logistics issues plaguing all industry supply chains globally and the negative effects emerging from Covid lockdowns in China once again, the Merino wool markets are resolutely holding on. This is indicative of reasonable to good demand at least. Those Merino types are very much being helped by consistent purchasing emanating from European and Indian interests, particularly on the FNF (1%vm average) types. 

What is not helping though is the staggeringly long steam time for delivery to those non-China destinations which some report at being up to 4 months from the time of booking contracts to delivery processed. This is almost double the duration of what the “normal” supply chain for wool textiles used to operate to just a few years back. 

48,000 bales has been rostered to sell next week with Tuesday, Wednesday and Thursday auctions over those three days.