The continuing low supply combined with just slightly better demand to help push prices upward at this week’s Australian wool auctions. With just Melbourne and Sydney operational (Fremantle sat out) there was just over 20,000 bales eventually offered, and around 95% of this was cleared to the trade in the penultimate sale of the season. There is five selling weeks remaining until the Winter three-week recess. South Africa is now in their two-month recess and auction sales there will resume in late August.

Understandably, most buyers were not wanting to push “too hard” to buy. With just normal purchasing appetite evident across all segments, it was somewhat inevitable that prices would have to rise. Not one single entity forced the market, but the regular container filling by indents and direct buyers, and order completion by traders, saw all types and descriptions in positive price territory. 

Most of the Merino sector lots offered sold at general levels of 10 to 20ac dearer than the previous week, but this was made up by good wools gaining 30 to 40ac dearer and lower end types par to 10ac dearer. The largest China top makers were the main buyers and were supported well by the trading fraternity. China indent buying appeared to stronger than the past month, perhaps indicative of both sides of the trade being hesitant to commit to contracts given the low volume and variable quality of supply.

Some of the best wools suitable for European spinners and RWS certified scheme wools (somewhat irrespective of type or quality) continue to attract large price premiums and in many instances sold 150ac above the normal types. The best premiums remain in the 18 to 21 micron certified wools, where very low availability plays it part.

The crossbred wool types had a good week with the mid microns (28 to 30 micron) performing well and adding 15ac to values. This represents 3.5% to 4% gains for the week. The finer types (25 to 27micron) were 5 to 10ac higher and the broadest wool of 31 micron plus being 5ac dearer. Carding types are also showing signs of improvement and solid gains of up to 10ac/clean kg were recorded this week. 

Auction rostered quantities rise to over 32,600 bales next week with all three centres back in operation. Melbourne and Sydney will sell on Tuesday and Wednesday, but Fremantle will sell just on Tuesday.