Wool prices at this week's Australian wool auctions were once more fully to the seller's favour. From the outset of selling, buyers were as keen if not keener than last week, but only after an initial period of testing the atmosphere to see any signs or chance of more opportune buying. After this test failed to materialize, almost all of the usual strong participants ensured a solid result for all sellers compared to previous levels.

Due to a public holiday Monday in the Southern states, the auctions were scheduled over three days this week. Both Fremantle and Sydney jumped higher on the first day, but as Melbourne joined in on the middle day of selling, prices somewhat cooled as the greater supply exerted minor resistance to the dearer trend. The strengthening Australian dollar (AUD) against mainly the US Dollar (USD)  and Chinese Yuan (CNY) also started to apply some braking pressure, but by the final day, buyer willingness at the standalone sale in Melbourne resumed that bullish trend as risk mitigation was sought.

Merino wools were again the main target of the trade. The outstanding performing types within that breed sector were the 19micron and broader types of all descriptions. These wools were a further 25 to 35ac/clean kg dearer for the week.  The diminishing supply of the better superfine wools finer than 18micron were also chased hard, with price gaps widening between the best and lower wools of similar microns in that area.  The concerning price gaps though remain the lack of a decent micron premium for those wools supplying the best and finest luxury apparel markets that the Merino breed can readily and usually satisfy.

Quality of supply overall, as well as the well-known and problematic drop in volumes, is being continually monitored and evaluated by buyers and exporters. Due to some tough drought conditions in many wool growing regions and many other regions looking like heading the same way, a large proportions of the offering is now sitting in the harder to place category. Lower strengths and yields are combining with higher calculated cvh readings to cause this. The growing volumes of these lower types may have processors looking to these wools to get value into their production runs. 41,000 bales being offered next week over the usual Tuesday/Wednesday rostered auction days.