Prices were generally weaker throughout the selling week at Australian wool auctions. The significant movements were within the carding/oddment type categories where losses of up to 50ac were registered. Most other mainstream types and descriptions were initially sold to 15/20ac lower levels but the final day auctions saw prices recover slightly. Subsequently by the close of selling the general quotations on the Merino fleece , skirtings and crossbred closed around 10ac lower for the series. 

Purchasing was again dominated by orders direct from the top makers or their indent suppliers and other first stage manufacturers. Traders continue to report they are struggling to obtain fresh business of any consequence from China. With the lockdowns being lifted across that country, many are expecting a renewed interest once transport systems get flowing properly again. Indian and European buying remains evident in the sale rooms but rates of purchase are somewhat more selective as a large portion of the offering is not meeting the quality and specifications required.  

The Eastern Market Indicator (EMI) dropped to 1414ac/clean kg but the more demand-relative USD EMI saw that marker rise to 1014usc/clean kg. The Western Market Indicator (WMI) dropped back by 14ac or 0.9% to close at 1490 ac/clean kg. The national clearance rate improved just slightly to 86.9%, and once more greatly influenced by the high passed in rates still being seen on the crossbred wool sectors.

The forex rate of the AUD against the USD will continue to influence the wool markets as the global economy adjusts to inflation. The AUD is set to profit from surging raw material prices as commodities traditionally do well in inflationary times. The RBA is expected to continually  raise interest rates and China is easing financial support of Chinese companies, advantaging a stronger AUD. Going against an improving AUD is the interest rate advantage of the USD over the AUD and that Australia has aligned more closely with USA.

Next week has only the two Eastern centres operating and 33,000 bales will be offered.