Price indicators surged into positive territory at this weeks’ Australian wool auctions. All types and descriptions were strongly sought from the outset. Auctioneers were able to showcase their skills and extract every cent more readily from a very enthusiastic buying fraternity as rapid and aggressive bids were being fired at them. Subsequent activity saw gains of 15 to 30ac/clean kg being registered by week's end.

Pre-sale talk on show-floors expressed good confidence that the market would hold through to the close. This mood was strong despite the much higher volumes up for sale than seen over the preceding month. The sale results that eventuated were above that of the earlier predictions and with the Australian dollar (AUD) v US dollar (USD) forex (foreign exchange) rate pushing up towards the 0.66 mark, the gains were even more notable.

In what was the final sale series before a three-week hiatus, all industry buying sectors were active and heavily involved. This week’s action was mainly a case of the big operators winning out for the majority of bales sold. The largest three Chinese top makers and the leading two local trading exporters competed strongly all week.

The best quality Merino wool types come under the most severe of buying pressure. This was particularly evident on wool types of 17 to 18.5 micron and containing lower vegetable matter (VM) levels (less than 1%) and higher washing and combing yields. Ultimately 30/40ac was gained on better wools and 15/20ac on lower types and heavier VM greater than 2%.

19 micron and broader Merino types still came under strong attention, but gains were more within the 10 to 15ac range on better specified wools and just firm on lower end wools and those lots above 1.5% in VM. A higher portion of those heavier VM wools were available, perhaps depressing that area somewhat as the wool was exceptionally good in other quality standards and would produce high standard tops after combing.  

The week featured a few Merino spinners quality clips and some individual scheme accredited clips which saw some extremely good premiums. In some instances, these well sought lots were fetching over 200ac/clean kg above that of similar micron and vm tested wools. 

Crossbred wools remain on their two-year dearer trend and once more the steady upward climb continued, albeit from very low levels of 24 months ago. Some very handy price gains have been recorded during this period with the 28micron indicator the standout at 42% higher in value.

Australian auctions now head into a three-week recess and will resume in the week commencing Monday 18th August.