Australian wool auctions produced a largely unchanged market this week. Minor adjustments within specific sectors did occur, but the major influence in price setting this week was the AUD:USD forex rate which aided the local values by going 1.2% to the favour of AUD prices. Nevertheless, the subsequent EMI gain of just 0.3% was underwhelming when compared with the currency advantage throughout selling.

Once again, pre-sale show floor discussions included high expectations of a very firm to dearer market. Business and enquiry was not huge in volume, but steady enough to inspire confidence. The Merino fleece prices rising a general 10/15ac clean/kg validated those predictions, but all other sectors sold in a subdued environment and to the buyer’s favour for the week. 

This week’s sales featured the final designated super fine Merino sale of the season (in Sydney), but the offerings were very light in volume and quality of wool was not to the highest order. The few spinners and best top making clips on offer were extremely well sought by the two major Italian operators and price premiums were large. Those exporters paid 240 to 360ac/clean kg above the general micron price guides, particularly for those individual sale lots with NM on the certificate. 

The market competition was weakened temporarily this week by local logistics problems surrounding the dumping and packing of containers. Delays in delivery from wharf and hence shipment, prevents letters of credit being executed which held up funds being returned to many of the buying/exporting companies. In this instance, it was believed tens of millions of dollars were held up.

The auction competition was very much a week of trader dominant price setting and purchasing. The ability to trade relatively freely across all global destinations created positive sentiment which flowed right through to the close of selling. In fact, some of the stronger enquiry appeared at the end of the auction week.

51,000 bales are rostered to sell next week from Tuesday through to the Thursday close.