This week’s Australian auctions saw some stability return to wool pricing. The leading indicator produced a largely firm result being just a cent higher in Australian cents terms, whilst the US dollar values shot up 1.6% which was almost entirely a currency induced result as the AUD strengthened sharply week to week on its pairing against the USD. 

Key to the overall firming of the market was the lift in demand for the true bulk commodity types of the 19 to 21 micron Merino wools which gained a very solid 20 to 30acents/kg clean. The Chinese buying led the push, but the Indian sub-continent were interested and a few orders from Europe also appeared. This stronger sector helped push the national clearance rates for the week well over the 90% mark as growers of these types largely chose to accept the prices on offer.  

The finer than 18.5 micron super fine Merino types somewhat struggled in comparison by retracting a general 25ac. The quality of the offering formed a large part of that price realization, as the selection contained many sub-par lots which are testing towards the harder to place specifications. This is particularly relevant in regards to adverse length,  strength and position of break in the middle (pobM) readings, which in turn  causes a higher calculated CvH - co-efficient of variation of hauteur (estimated top length).  

The local logistics issues continue. A new concern arose this past week for the operations at the WA port of Fremantle, which is also now experiencing some peak of season dumping and shipping delays. Some positive news was disseminated through the trade this week from a large operator who has flagged improving conditions over the coming months, with the upcoming week of wool sales likely to assist some congestion being cleared.

The locally based trading exporters were the keenest in the Merino fleece sale rooms this week. Strong support was also provided by China’s largest top making buyer representatives.  The top four purchasers in that segment took almost 50% of the sold bales. A Chinese indent buyer dominated the crossbred sector(27.5% of sold bales) and helped those types remain relatively firm throughout the selling week. General competition was evident on all other types and descriptions.  

49,500 bales are rostered to sell next week on Tuesday to Thursday.