Prices at this week’s Australian wool auctions continued on their upward run  with some very large gains being recorded at the finer end of the Merino offering. The substantially weaker Australian dollar (AUD) against the US dollar and Euro provided almost all of the entire average market value gains.  As has been the case since the New Year, demand remains remarkably stable as witnessed by the steadier prices when converted to USD. 

The Eastern Market Indicator (EMI) closed almost 2% higher again to close selling for the week at 1427 ac/clean kg, which is just 22ac short of the season high AUD price. The USD EMI shifted slightly (-0.4%) lower due to the advantageous forex rates available in that currency and closed at 992usc/clean kg. The Western Market Indicator (WMI) appreciated 2% to jump over the 1500ac mark to conclude sales at the 1502 ac/clean kg level. There was a national clearance of 91% of all wool offered.

There has only been a slight drop in activity over the past month from China, due to the logistics and ongoing pandemic management issues currently being dealt with in that nation. Despite this softening, other significant users from India and Europe have stepped up their operations and are seemingly recovering towards near pre Covid levels of operation. This is particularly evident with the competition being seen on sale lots with better specifications. This is mainly on, but not limited to,  the wool that has better characteristics of style and strength and  lower levels of vegetable matter (vm). 

Most sections were extremely active in purchasing this week, with Chinese indents and one of the major Chinese top makers providing stiff opposition to the largest traders.  As a result, Merino wools finer than 18.5micron gained 40 to 60ac and 19 and broader gained 30ac. Crossbreds and cardings were by no means neglected and that type sector added 15 to 20ac to their values.

Next week’s sales have increased in volumes due to the price gains making offering wool a more attractive proposition to growers holding wool in store. There is now around 46,000 bales rostered to sell next week over two days.