The final auctions of the 2020/21 season were held this week in Australia. Prices were negatively affected and loss of wool values were registered across all sectors. Very large volumes scheduled for the next two weeks provided relief to the previously existent buying pressure, and allowed more opportunistic purchasing by local exporters, traders and overseas customers this week.

The Eastern Market Indicator (EMI) dropped 45ac or a touch over 3% to close the selling season out at 1425ac clean/kg, coming off last weeks season high of 1468ac. In USD terms the EMI closed at 3.4% or 38usc lower at 1070usc clean/kg. Western Australian auctions returned this week and the WMI (Western Market Indicator) dropped 37ac to 1440ac clean/kg.  WA prices were strongly in line with the Eastern centres, and exceeded the Sydney MPG’s on 18 to 19 micron wools.

The US equivalent wool prices did not obtain the benefit of the weaker AUD until most of this weeks selling had been concluded. The AUD:USD forex rate only fell Wednesday afternoon and this was after the AUD was actually stronger and traded above last weeks value for most of the auction duration.

Wildly mixed price outcomes arose within the Merino fleece with a range of reductions of 30 to 80ac generally. Skirtings were less erratic and dropped more controllably throughout to be 45 to 55ac cheaper. Crossbreds were 10 to 20ac lower but cardings bucked the trend somewhat and actually posted small gains in Melbourne and Fremantle but lost out with 10ac falls in Sydney.

As prices weakened throughout both selling days, the passed-in rates increased exponentially. An abnormally wide variation in grower seller decisions was evident, with the three selling centres abnormally out of sync with each other. The North had a clearance rate of 86.4%,South at 77.5% and the West at 72.4%. The national auctions cleared 78.4% of the offered volume as 21.6% failed to meet the price expectations of sellers.

Traders dominated most buying list sectors as Chinese indents and some top makers took it easier as prices fell away. European top maker dominated the crossbred segment with a 30% acquisition of those types.

All three centres are selling again next week with 55,000 bales rostered.