All wool types and descriptions on offer sold dearer this week at the Australian wool auctions. Renewed orders from both European and sub-continent users, although relatively small in volume,  pushed enough extra competition into sale rooms to see the Chinese suppliers having to increase buy in levels to try and purchase their usual weekly requirements. 

Grower sellers were keen to take the better prices on offer as witnessed by the 95.5% sold figure. This is one of the highest weekly clearance rates for some time. This adds weight to the current trend by sellers to accept buyers bids. For the season a very high 90.5% of all wool offered has been sold. This suggests current wool values are very attractive compared to other on farm production enterprises at present.

In a week that was relatively unaffected by forex rates, it was all prompt demand and exporters forward order books and inventory replenishment that saw prices appreciate. The magnitude of the gains was reasonably absorbed, with around 25ac or a general 1.6% added to raw wool values, but the steady and measured velocity of the gains tend to indicate it was more about buying to set prices rather than reacting to a surging demand scenario.

Local trading houses dominated the purchasing action with solid support coming from strong Chinese indents in both the Merino and crossbred wool type sectors. Significantly, the usually dominant direct buying from the three largest Chinese top makers was extremely subdued and limited in volume. Compared to the same point of last season, there has been an additional 3.4% or over 10,000 bales more wool sold through auction. 

On the Merino wool sector, the buying pressure centred around types broader than 18micron, with super fine (less than 18mic) struggling somewhat to find the stimulus required to create the usual premiums and price gaps to the broader wools. All crossbred wools attracted keener interest and in percentage terms, are in the midst of somewhat of a mini recovery. 28mic is 13.5% dearer and 30micron 21% dearer than the season starting price basis.

Around 40,000 bales is rostered to sell next week over a Tuesday and Wednesday roster. Please note, that the auction sales for Week 13 and Week 14 are scheduled to change to a Wednesday and Thursday selling roster.