Prices at the penultimate Australian wool auctions prior to the three-week Christmas/New Year recess continued down the same uneventful path that has been the season long trend. Across both the Merino and crossbred sections, most wool types and descriptions saw movements of just +/- 10ac around the established price levels.

Traders led the competition initially, but, as the week progressed, the first stage manufacturers lifted their purchasing rates to be dominant by the close. An average 1% lower AUD on the major forex trading pairs assisted prices hold firm. The general auction atmosphere and obvious purchasing strategies though was rather circumspect, with careful attention being paid to only taking on board inventory necessary to complete immediate needs, given the costs of holding wool through the upcoming recess.

The highlight of the selling week was in the Fremantle centre in Western Australia which recorded an overall gain in their market indicator of 3ac. This rise came largely on the back of strong competition around the 19-micron Merino wools, which gained 20ac for the week and closed the highest of all indicators for that micron nationwide. Being the last centre to conclude selling for the week, perhaps the Fremantle activity gives a lead into what may occur at next weeks final 2024 auction sales.

Wool prices have been remarkably stable for the past eighteen months with the maximum EMI price differential of 125ac/clean kg. The high of 1212ac was registered 12 months ago in December 2023 and a low of 1087ac was in August this year. The 18 month Eastern Market Indicator (EMI) average is currently 1144ac and the Western Market Indicator (WMI) at 1280ac/clean kg.

The overriding influence going forward though will be from the supply side of the industry. Auction sales up to the end of Week24 in 2023 compared to Week 24 of 2024 this past week shows bales sold for this year are 152,283 bales lower or a drop off of over 19%. 

Around 36,000 Australian grown bales are on offer next week in the final sale of the 2024 calendar year. All three selling centres will operate, but Fremantle will only sell on Tuesday given the low volumes available. Both Sydney and Melbourne will operate to the usual Tuesday and Wednesday roster.