With just the two Eastern centres operating at this week’s Australian wool auctions, the reduced volumes available seemed to resonate positively with the buyers. Price gains on most types were achieved and were significant in magnitude in many cases. With just three selling weeks left of this 2021/22 selling season, the trade purchases went through the 1.5million bale mark of wool sold this season at auction. This represents a raw wool value approaching A$2.5billion. 

One or two of the largest traders stepped up their buying of Merino types and the ensuing competition against the first stage manufacturers led to the strong price gains. Purchasing though was again dominated by these direct to factory requirements from mills, adding to the three- week run of purchasing dominance of these users. 

The Eastern Market Indicator (EMI) accelerated 1.7% upwards this week to 1438ac/clean kg.  This is the highest closing AUD EMI basis for four months and the second highest of the season. Despite the rising value of the AUD against most other currencies, the USD EMI outperformed the Aussie values and shot 2.2% higher to 1036usc/clean kg. At this level, the USD EMI is well above the current seasonal average of 1002usc/clean kg.

With the higher prices for a large portion of the offering, the clearance rates at auction improved strongly to 90.4%. This was strongly influenced by the 95.4% clearance rate within the Merino fleece. There was no Western wool auction this week. 

Led by the better quality sale lots of all microns, prices for Merino wools posted general gains of 30 to 40ac/clean kg. Many individual lots achieved much higher returns and clips that achieved lower vm (vegetable matter), good yields and reasonable length and strength results were 60 to 80ac better on a week to week comparison. These sort of gains were mainly in the superfine category finer than 18.5micron, although some very low vm lots in the broader areas also hit those heights. 

The significant appreciation of Merino types was not matched within the carding/oddment sectors as those wools recorded losses of between 10 to 25ac. The greater falls were predominantly across the locks and crutchings descriptions. Crossbred wool types were largely unchanged but around the 28 micron mark, 10ac gains were apparent giving a glimpse of improvement in demand/interest for that category.

Next week’s sales sees a return to the three selling centres in operation, but volumes remain relatively light at around 38,000 bales. The following week sees just the two Eastern centres operating again.