Australian wool auctions produced mainly price improvements. All Merino wool types broader than 20 micron came under the most intense of the auction buyer competition. Low volumes of this area of production continue to be offered at auction and combined with the current demand, this led to gains of 15 to 20ac/clean kg, irrespective of description or faults.

The largest of the Chinese top making mills topped buyer lists this week. Where holes started to appear in prices, these companies stepped into the market and took advantage of any discounts to the ruling rates of the past few weeks of strong results. This was particularly evident on the more difficult specification sale lots which the traders find harder to place into their standard contracts. These first stage manufacturing machinery owners appear to have a far greater flexibility to their purchasing regime at times. 

Areas of the offering did retract somewhat though as orders were filled and the Australian Dollar (AUD) strengthened against both the US dollar, USD (+0.74%) and Chinese yuan, CNY (+0.76%). Most Merino wools finer than 19.5micron in the Western Australian centre dropped around 15ac/clean kg, as did the 17 to 18 micron wools in Sydney.

Crossbred wools sold generally 5ac/clean kg dearer on types finer than 30 micron, but 5ac cheaper for types broader than 30 micron. Cardings sold to a firm market with very little change.

Since the start of the current season, all wool types and descriptions have recorded modest (+1.8% on 16.5 micron) to substantial (+15.2% on the 32 micron) increases to their values. The overall market value, as measured by the Eastern Market Indicator (EMI) has improved 11.1% or 125ac/clean kg since July 1, 2024.

The Western Market Indicator (WMI) is more reflective of just the Merino market. That state has production levels of wools finer than 23.5 micron of greater than 98% of the total wool tested up to this point of the season. The WMI has improved 10.5% since the commencement of the season.

41,000 bales being offered next week over the usual Tuesday/Wednesday rostered auction days.