Australian wool auctions produced a slight turnabout in fortunes this week, with almost all types on offer showing degrees of price improvement. The gains were led largely by the mid micron ( 19 to 22micron) Merino types, with the Fremantle market in WA once more the strongest market and strongest lead as to the near term prospects for wool prices.

A steady start to the auction week was seen, with the only positivity arising from the lower value AUD against the US dollar. This forex gain saw prices basically just hold in local currency value, but still falling in USD price levels. The smaller offered volumes due to the shortened selling week also assisted in prices not degrading much at all. A dominant buying display from Chinese indent operators occurred on the first day, perhaps signalling what was to follow the next day.

Pre sale, the exporters had reported a better interest for skirting types, but still subdued demand for fleece wools of all microns. Cardings remained a no go zone for most with just the odd contract written each week, Crossbred wool types were not very well sought with just the lowest prices offered turned into business as that low price became irresistible to some.

By mid week though the overnight trading books had bounced significantly for the better. The keener enquiry grew to be converted into firm sales, which were quickly asked for repeats which took some by surprise that request for orders had been so readily turned into written contracts. By Friday (today) most traders had seen enough to see their exposed offered prices reach much higher levels, and some of which had been snapped up. This was mainly Chinese based new business and exporters report stocks on hand had reduced considerably.

The final day of auction sales on Thursday saw a strong rebound in AUD price levels as some buyers had pre-empted or assessed the better selling opportunities that were to eventually come. Apart from carding wools, all types and descriptions enjoyed strong value gains of between 20 to 30ac, and some individual types such as the 20 to 22 micron wools, shot up 50ac for the day. Strong export trader buying took place and knocked the Chinese indents out of the market for the time being.

 44,500 bales are rostered to sell next week on Tuesday and Wednesday.