Australian wool auctions could not sustain the lift in prices that eventuated last week, but nevertheless, most sellers were accepting of the slightly lower levels available. The stronger Australian dollar (AUD) against all the major trading  (+0.7 to +1.3%) currencies accounted for all of the Eastern losses in the local AUD  prices, but the Western market ultimately fell to levels below that forex loss. This perhaps indicates some filling of the current orders and some easing of the pressure for prompt demand and shipment.

Going with the trend of last week, the European and Indian orders were quite obvious in the auction rooms. Some new season specialty super fine wools were on offer and Italian buying saw much of that flow through to their dominant demands. Handy premiums of up 130/160ac were available for those sale lots meeting the stringent tested and visual requirements. Those premiums were even higher (+240 to +300) for those clips that were able to produce the highest quality wools under NM conditions.

Local trading exporters led the purchasing again this week. The large Chinese top makers lifted their buy in rates a little, but their activity in the auction rooms remain subdued. Selective buying to specific target price points appears  to be their methods of operation at present. Chinese indent operators were similarly selective within the Merino sector, but strong purchasing across most of the crossbred wool types came from these buying orders.

Merino wool prices in the two eastern selling centres saw prices end up a general 15ac cheaper by the close of selling. The WA auction though recorded larger losses and up to 45ac was lost from the established wool values which saw WA wool values around 30ac lower than the east. This was after two consecutive weeks of WA receiving the highest prices on a type to type basis. Crossbred wool types sold around the same levels but towards the buyers favour mostly.

This weekend sees the significant trade get together at the Nanjing Wool Market Conference, the first such event staged face to face since the outbreak of Covid. Around 40,000 bales is rostered to sell next week over a Tuesday and Wednesday roster in Melbourne but Wednesday and Thursday in Sydney and Fremantle.