The opening to the new 2023 year Australian wool auctions put wool prices to the test from the outset as more than 50,000 bales was being offered. Local exporters reported that new business from most global customers was available sporadically through the three week selling recess. Those that had the stocks on hand were freely able to dispose of them at reasonably advantageous prices. Given the tight business conditions over the previous first half of the season, some sales were made with balances left to buy which was a sign of exporters willing to sell forward into the expected larger offerings of January and February. 

A slow and somewhat cautious first day of selling didn’t provide much direction or a signalling of intention from our overseas users, but by the second day a positive demand for prompt delivery became apparent. This was particularly evident on the super fine selection of Merino wools finer than 18 micron. Some individual lots of superior quality within this type area spiked upwards by over 100ac/clean kg. The last day of selling featured a standalone Melbourne sale which saw a strong consolidation of the price levels established and some small gains in the 18.5 to 21 micron descriptions. 

The stronger demand from China that appeared in December ‘22 for Merino fleece and skirting wools was very much apparent this week. The skirting types performed the best and were consistently 40 to 50ac dearer. The 19 micron and finer fleece types lifted a general 25ac with the better specifications and lower VM types especially well sought and price gains far exceeded the general published quotes. The broader than 19 micron wools though fell away by 20ac and more in the WA market. Crossbred wools dropped 15ac but the carding types were well supported and were fully firm. 

This weeks buying was dominated by the largest influencers. The major exporters were keen and topped Merino buying lists, but the support from the Chinese and local first stage manufacturers was evident across all segments. As the week progressed, the China indent orders also strengthened to lift purchasing rates. By weeks end, the auction competition was as widespread as seen for quite some time. 51,000 bales is up for auction next week.