This week’s market results at Australian wool auctions was well and truly determined by currency and a slight back off in prompt demand. The AUD shifted 1.5% higher against it’s leading forex pair used in wool trading - the US dollar. Despite this negative factor the eastern states indicator lost just 0.3% of value but in the West 2% lower values in the predominant Merino selection painted the softer demand picture that arose following the bullish previous couple of weeks.

Superfine Merino types finer than 18micron helped maintain the overall market with prices a general 20ac dearer. The better specified and more stylish wools were 40/50ac dearer at times, with the surprising activity of two or three Chinese orders competing against - and often outbidding -the normally dominant Euro orders.

These positive results were countered though with the broader than 18.0 micron wools falling away throughout selling by 25ac. The larger falls occurred in Melbourne where volumes on offer were much greater. The WA market, which was almost entirely 18.5 to 20.5micron wools, was a consistent 40ac cheaper across the type and micron spectrum.   

Australia’s largest trading house dominated purchasing this week. Good support came from the top three Chinese top maker representatives whom were progressively keener as prices drifted backward. The indents from both China and India were rather subdued, particularly from China whom had been setting the higher price levels daily for the past two weeks.

Problems at Australian wharves continue. One of the country's largest ports operators (accounting for 40% of movements) came under a cyber incident earlier this month which forced it to suspend operations for three days. Subsequent strike action and rolling stoppages by workers at this same company have also interfered with normal operations. This has impacted container shipping of wool and thus payments to exporters suffering delays whom negotiate letters of credit to a bill of lading date (B/l). 

48,000 bales is currently rostered to sell next week on Tuesday to Thursday as Melbourne sells over three days. This is the penultimate selling week of the 2023 calendar year before the annual summer recess.