A currency assisted market helped Australian wool auction prices maintain and generally add a few cents in value this week. The leading forex pair of the AUD v USD shifted 0.7% to the favour of local price returns and those rates stayed in play for the majority of time auctions were in operation. Prices though failed to fully realize those potential gains with the Eastern Market Indicator (EMI) benefitting by less than half of that forex advantage by increasing by just 0.3%.
The subdued tone of most exporters towards the market outcomes were still ruling at the start of the selling week. No clear signals had been forthcoming since the conclusion of the previous week’s activities. Some signs of slight demand improvements did appear though as the week progressed. Traders were reportedly executing a few new sales which allowed for movement of some stocks, freeing up cash and allowing greater participation in the sale rooms. As one leading buyer noted, not game changing, but at least there are signs of some renewal.
Despite the lacklustre movements in the leading price indicators, the ebbs and flow of individual types pricing continued this week. The majority of the Merino gains came about on the final day.
All Merino types finer than 18 micron came under close scrutiny from not just traders and top makers but also direct buying orders from Europe, which forced levels to rise by 10 to 25ac/ clean kg. Better wools were more affected, and 3 or 4 clips exhibiting the superior spinners quality fetched well over 200ac premiums from the premium Italian weaver reps.
The 18 to 19 micron Merino wool prices stayed largely where the market had them pegged, but more interest on all descriptions 19.5 micron and broader saw these sale lots forge upwards of 20ac dearer for the week. The Fremantle market by and large missed the improvements as they had sold Tuesday, prior to the better support appearing. Crossbred and carding sold to a largely unchanged scenario, with just minimal adjustments.
Australia’s most dominant buying house featured at the top (or near) of all type sectors. Top makers from China competed strongly, and lifted their buying rates towards the close of selling. All other manufacturers and traders also increased their interest. Perhaps the upcoming 3 week recess in sales prompting this renewed vigour?
Around 24,000 bales will be offered next week at Sydney and Melbourne.
