Australian wool auctions again meandered along and failed to put some additional value on top of wool prices. In general terms, 15 to 25ac lower bids were being taken within the Merino sector, but crossbred wool types were trading 5 to 15ac higher. Cardings remained largely unchanged but sold to the sellers favour at various stages of the 3 day split auction week.

The substantially weaker Australian dollar (AUD) at - 1.2% against both the US dollar (USD) and Chinese yuan (CNY)  at -1.0%, could not inject any life into the market. These movements and the weaker auction prices combined to see the general wool indicators up to nearly 2% lower by the close of selling in these currencies. What those changes in forex did do though was to prop up the market somewhat as buyers in both local and overseas markets assessed the new levels available.

The new season wools are generally showing a good improvement in quality above that of the past wet years. The most noticeable trait is the return to the traditional bright and white wools that the global industry values so highly. The drier conditions have also seen a rise in processing yields and a reduction in overall vegetable matter (vm) content. Length and strength tests are also slightly better than the last few seasons. Of some concern though is the rapidly deteriorating climactic conditions across many wool growing areas where rainfall is now required to ensure pasture through the hotter months.

Wool auction sale offerings are now trending more volume towards the super fine end (<18.6 micron) of the Merino sector. It has been somewhat interesting to see that many of the higher quality, best top making clips in that area are now being purchased by the Chinese manufacturers. The ultra-fine (finer than 16.5mic) segment is attracting very strong interest from that nation, providing new outlets and competition to that wool production area.

Traders again topped Merino purchase lists, but Chinese top makers lifted their buying as prices reduced. The crossbred types though were dominated by two indent large orders from China which were largely responsible for the strength in competition and subsequent price gains. 

Around 39,000 Australian bales is rostered to sell next week over a Wednesday and Thursday roster nationally.