There were limited changes to wool price levels this week at the Australian wool auctions. Minor changes were witnessed on the super fine Merino categories finer than 18micron, which traded at levels 15ac higher and the WA market which had a 10ac lower trading base for the entire weeks selling. 

The weeks sales saw the purchasing division of our exporters shifting from the indent orders that were dominant in the market to the local traders hitting the top of buyers lists once more. This was across wool type sectors. Whilst indents from China remained in the market, their aggression of last week was not be seen, possibly indicating a prompt demand fulfilment for the time being from their clients. 

Not much buying activity was sighted from the majority of the large global top makers. The largest of the Chinese manufacturers though was the exception and maintained their steady and consistent buying rates on the Merino combing wool sector. Crossbred wool became the domain of our largest exporter as they stepped into that area following on from the 2/3 weeks of price weakening in that area as buying orders waned.  

Impressive clearance rates continue to be a standout statistically and historically as sellers decided to clear over 94% of the wool that they had put up for sale this week. Auctions in Australia have averaged an annual clearance of 86.4% for the preceding four seasons and the current 2023/23 seasonal average sits at 91.5% indicative of the willingness to offer and price accept. The parlous state of the value of other ag products is perhaps the foundation? 

Cardings and carbonizing (heavy vegetable matter -vm) types remain in the doldrums, with prices drifting once more under sluggish -at best - demand. Many manufacturers, traders and buyers of these wools are commenting that the current situation is some of the toughest business conditions encountered for decades.  

One positive for the wool market has been the stability in the general price  indicator. This has been +/- 50/20 respectively for five months around both the AUD EMI average of 11.52 and USD EMI average of 7.50. This places price risk at vey low levels through the entire supply/manufacture chain. 

45,000 bales is rostered for sale next week over the Tues/Wed schedule.