A confusing week at the Australian wool auctions, with vastly differing results being achieved between Melbourne and the other two selling centres. Melbourne pushed higher on all Merino types by 10 to 60ac for the week whilst prices fell 10 to 25ac at the other venues. In fact, some of the Southern regions individual micron price guides closed at levels 70 to 100ac higher, rather significant as over 50% of all wool sold was in Melbourne at the better prices. Cardings and crossbreds behaved similarly through all centres and traded within 10ac above or below current quotations.

The Eastern Market Indicator (EMI) was surprisingly 2ac lower for the week despite the Melbourne dominance in both prices rises and volume sold and finished at 1367 ac/clean kg. With the  Australian dollar depreciating against all major trading currencies, the EMI when expressed in USD weakened by 1.7% or 18usc to close at 1037 usc/clean kg. The Western Market Indicator (WMI) fell 4ac to 1417 ac/clean kg. Nationally there was 88.7% clearance rate which was the highest for a few weeks.

Selling commenced the week in a positive atmosphere with most types and descriptions on offer being sold to the seller’s favour. Steady enquiry, some new business written into all destinations and next week‘s lack of auctions all combined to see a slight improvement in wool values. That trend continued and accelerated greatly on the finer end of the Merino type spectrum in Melbourne. Wools finer than 18micron shot 30 to 60ac higher under extreme competition with one European top maker setting a frenetic pace. That action was not repeated at the other centres and in fact a cheapening tone ensued throughout, with larger daily volumes than normal hampering activity.

Chinese top makers and indent purchasing companies led the markets buying lists, with strong support from Australia’s local traders. The leading buyers of each type sector came to the fore and executed orders promptly and took advantage of some weaker prices where they arose, helping minimize and then stabilize the extent of any falls. 

There is a recess next week, with sales recommencing Wed 27th April.