Australian wool auctions produced results this week that haven't been seen for some time. A stronger, small, rise in prices locally coincided with an Australian dollar strengthening by over 1% against our major trading currencies. This saw all overseas buyers using US dollars or Chinese yuan having to pay that higher price to secure any sort of inventory this week, which they seemingly absorbed.

The market opened solidly this week, but it was evident that some sort of pressure was being applied to certain market areas. The Melbourne and Fremantle markets initially sold to a firm unchanged scenario, but Sydney was as an outlier by selling 5 to 15ac higher for almost the entire Merino offering. 

Cardings in all centres though faltered somewhat and drifted 10ac lower throughout the first day. Crossbreds at the finer end added a few cents but the broader end had prices 10ac lower by the end of that first day of selling. 

The second and final day of auctions though saw all selling centres producing dearer sale results across a high majority of wool types offered. Gains of between 5 to 10ac/clean kg had been registered throughout the Merino, crossbred and carding sectors. Competition was the strongest at the close of selling as buyers pushed harder to buy in relatively smallish offerings available. The bulk Merino types aligned well in Melbourne and Fremantle by the end of the selling week, but Sydney remained a general 10ac higher.

Australian based exporter traders stepped up their purchasing rates, mainly on the combing wools, but of all microns and Merino and crossbred alike. In sale room direct buying Chinese interests continue to support the market strongly, as did a strong offshore Chinese sourced indent. 

The strength of our largest buyer though continually out-bid those interests, despite the conversion cost of US dollars going against the local AUD and CIF pricing. Some buying from a European based manufacture was seen within the crossbred segment, as well as a slight increase of interest in price on super fine Merino, particularly in Sydney which saw lots sell 30ac higher.    

Next week has around 39,000 bales rostered to sell Tues/Wed.