Following on from a one week break in sales, the Australian wool auctions returned to large offerings and produced some widely varying sale results, particularly between the selling centres. The Fremantle market in WA produced the best results, with most Merino fleece wools on offer gaining 15 to 25ac over the course of the week. The two Eastern Australian centres were mainly 5 to 10ac cheaper by the close but had been trading at levels lower than that through the selling week.

The week started off slowly and prices were 20 to 30ac lower. At these lower levels, the two largest Chinese top makers accumulated a large portion of mainly Merino wool, and topped the buyers lists by the end on the first day. 

The second day of selling saw more and further widespread orders slowly filter back into the market. After assessment of the opening days prices, trader orders and buy indents soon added strength to competition and steadied those initial price falls and then saw the market begin to firm. By the closing day, which was a standalone Melbourne sale, that positivity had continued and many types had reverted back near the pre-Easter closing basis. 

The recess in sales saw a slight catch up in logistics enabling more containers to be packed and cleared, but also a refreshment to buyer finances. This refreshment came more so from the lack of having to spend on purchases rather than shipments being made and paid for. 

The variable quality of the selection continues to play a large part in auction price direction. The price gaps for similar micron wool but displaying different length, strength and vegetable matter test results are large and can be upwards of 5 to 6% different in value from top to bottom edges of the same point of microns. In the superfine end of the market this can extend to almost 20% value premium for those wools with strength readings of 40Nkt plus, lower vm (less than 1.5%) and displaying better style.

The USD v AUD pair continues to trade in a comparatively tight band from mid-66’s to mid 67’s. The USD value of Merino wool remains firm and as such so do the established prices for the standard traded types. This gives more room to traders being able to offer some volume under forward contracts rather than buy indent operations enabling overseas users a base to work at. This helps underpin the confidence in the market price. 

45,000 bales are rostered to sell next week on Wednesday and Thursday.