Australian wool auctions continued this week with the softer tone that has been the atmosphere for some weeks now. Mixed results were achieved depending on the market segment to wool type. Generally, it is the higher current price point wools that are being more affected. The lower priced wools in both the carding and crossbred wool descriptions sold quite well in comparison and managed to sell firm to seller's favour.  

Price levels for the super fine Merino wools of 18.5 micron and finer continue to feel the brunt of the muted global discretionary spending. As such, our key European luxury apparel makers are extremely cautious and selective in the auction centres. That lack of usual strength has diluted competition across these finest of wools, which makes up around 34% of the total Australian wool production. 

Thankfully, a few of the larger vertical worsted mills and top makers operating in China have stepped into that space and are absorbing much of the better wools on offer. Going forward, if the Chinese get a taste for the better and finer quality wools, we could see some stiff competition return to this sector when Europe and indeed the global economy returns to normality. 

Merino wools in the 18.5 to 22 micron bracket fared significantly better than their finer counterparts. Price falls were minimal in this area. Buying interest was mainly from China, but some smatterings of purchasing from Indian interest provided the counteraction necessary to basically hold the market at firm to buyers favour levels.

The Australian dollar value against the US dollar and Chinese Yuan were insignificant this week in wool price determination. The slight increase in AUD value did not interfere with the current demand or buying room activity from directly represented buyers or indents. 

Amongst the buyers' analysis for the week, evidence emerged of the Chinese top makers becoming more interested in the finer Merino wools as price gaps compress further. Two of the top three top makers representatives topped the Merino fleece buyers lists.

No sales next week due to the Easter recess.