Wool markets operated to largely unchanged sale results at this at this week’s Australian auctions. Small falls were realized in the Western Australian centre and the softer price trend remaining in place for super fine wools at both the Eastern selling centres.

The relatively stable environment somewhat understated the gains made this week when expressed in US dollars (USD). A handy 1.3% gain was made on the EMI in this currency and indicative of a slightly stronger demand scenario given a majority of wool is transacted globally using the USD.  

Following on from the Chinese New Year holidays, most factories and traders are now back behind their desks and looking for their next move. Evidence at this week’s selling was that the direct buying representatives and indent operators were more active, yet not fully back to normal strength by any means. As this became visible, the traders became keener to execute any outstanding orders that were cash positive. 

This slight increase in interest though was enough to create the additional competition to traders see the market hold in AUD terms and give that USD improvement. Even more relevant though was as lightly more active Indian participation and the odd spark from European operators. The market tone though seemed similar with confidence a word not being fully expressed yet, particularly from European reps further up the chain.

Within the Merino sector, the sale lots generally 19 to 22micron were again the most well sought and a few cents in value was added throughout selling. In fact, this sector of the market has been relatively resistant to any large degree of value loss for the season.  The same though can’t be said for the super fine types which have seen some liberal weakening of their returns. 

Crossbred wool types again saw devaluations of around 10 to 15ac on the finer than 26-micron types and broader than 31micron wools, but the mid micron wools of 26 to 30micron held firm which is a good result given the stronger forex and the that most of the selection was in that range. Cardings sold firm throughout and a touch dearer on some individual type sectors.  

Next week has 40,000 bales for offer with just 2 days selling Tues/Wed.