The dearer market extended into this week's Australian wool auctions with a strong surge of interest being placed at the finest end of both the Merino and crossbred wool sectors. According to the official industry report from AWEX (Australian Wool Exchange), this was “the ninth straight weekly rise, the longest sequence of consecutive gains since 2009”.

All lots on offer were met with very keen interest from the trade and subsequent gains across all types and descriptions were recorded. Some individually extraordinary additions to value were witnessed through the rise in AWEX MPG’s (micron price guides. For example, a 78ac/clean kg gain on 17micron was seen in Melbourne and also, a 64ac/clean kg rise on the 26micron MPG – a very impressive 8.4% for just the week.

The Merino sector market was split into two as far as price gains went. All types that were 18micron or finer appreciated in value within the general range of 45 to 65ac/clean kg. The better specified lots that were suitable to European production or European specifications to make tops to sell to that area were acutely sought after.

Merino descriptions greater than 18micron were not as greatly pushed upward, but still, the gains were handy. Depending on each lot’s specifications 5 to 25ac/clean kg gains were made. The price gaps to their finer counterparts possibly accounted for the better competition on those finest of wools as historically speaking, the super fine component of the Australian clip is possibly still too close to those broader Merino levels.

Significant purchasing came from Australia’s largest trader and exporter. All wools were of interest to them, and they exerted their strength upon some strong buying from mainly the Chinese indents and direct buying top makers.

It is Nanjing wool market conference time again this weekend and it will remain to be seen what positivity emerges from that key annual gathering. In what is quite a rare occurrence, the market has risen right through August and right up to conference time. A strong pointer indeed. The Chinese mood should be buoyant as this week the brokers and buyers have agreed this week to have an annual week’s recess for lunar New Year when that day falls in February. Over 30,000 bales for sale next week.