Australian wool auctions opened to improved levels for the Merino segment of the offering this week. Strong gains of 10 to 15ac were initially recorded in the Eastern selling centres and even better 20ac plus advances were registered in the Western Australian market. The crossbred and carding sectors were not so well supported and sold generally to the buyer’s favour.

Better enquiry since the close of selling the previous week and through the weekend was converted to some welcome fresh business for exporters but volumes booked firm were reported to be on the lowish side. Most of these new contracts originated from the Chinese customers. Following the immediate price gains at auction, that enquiry went cold once more as our overseas wool users saw no solid lead or need to follow the spot market price up to book further quantity.   

Subsequently the second and final day of selling saw some price retraction even though the AUD was weakening once more against the major trading currencies which gave the US dollar, Chinese yuan and Euro bidders and buyers a 0.5 to 0.8% price advantage on the week to week comparison. 

The more robust interest for new wool contracts was again enough to put a generally harder competitive environment into auction rooms and was the catalyst to create small incremental movements upwards in the Australian dollar values of Merino wools on offer. The 19.0 to 20.0 micron types were the most well sought of the selection and managed a 15ac price increase for the week. Broader than 20 micron sold barely firm.

The superfine Merino types finer than 18.5 micron were again subjected to a lacklustre demand scenario, despite the high-quality wools from the New England area of NSW being available. Some of these clips though were purchased by the Italian worsted industry at significant premium prices above the micron price guide quotes, but compelling bidding from some Chinese vertical companies occurred and soaked up many bales that would normally be the domain of sole Italian competition and import. 

Next week has a touch over 41,000 bales on offer with the auctions running over 2 days on Tuesday and Wednesday.