The vagaries in behaviour that can at times be the Australian wool auction markets was fully exposed this week, but this time it was all to the sellers favour. Strong gains across all of the Merino fleece and skirting sector were recorded, with many individual sale lots verging on being up to, and over, 100ac dearer. Small gains were also extracted from buyers pockets on the crossbred wools and carding segments which contributed to the healthiest sale week for sellers in two months.

The predominant reasoning for the strong market was supply. Forward sellers, had been well and truly betting on between 100,000 and 110,000 bales being offered for the final two sales pre the mid-year recess. This has been the case for many a season and most operators has not foreseen any reason to jump into the market to complete commitments prior to the two weeks of the July auctions, which would allow completion of their July shipments and allow focus to turn towards August contractual arrangements.  

Local sellers resistance to the low prices being offered for the past two months forced this figure down to just 80,000 bales to be offered in the two weeks of July. Much of the wool held back was Merino. This placed pressure on exporters, manufacturers and indents from overseas for their prompt delivery requirements. A swift reassessment in strategy from participants saw all return to full activity simultaneously and the resultant dearer market.  

On the demand side, some small re-ignition of enquiry was evident and the prices available on the smallish volume of new business conducted during the week were noticeably better. The buying from India and Europe was also more evident and somewhat keener on the better specified lots. 

Most overseas users were faced with forward offer prices more than 4% dearer, so strong indents were placed into the auction, hoping for better spot buy in levels. Chinese top makers remained firmly at the or near the top of buyers lists, but it was the stronger buying from exporters that created the ascending wool value scenario.

44,000 bales are rostered to sell next week prior to the three-week recess.