Australian wool auctions performed admirably this week, not by increasing price levels, but by holding very firm in the face of the heavy volumes hitting the market. Buyer expectations of a cheaper market were largely unmet, with all types and descriptions on offer recording just minor adjustments downward. The rebased AWEX EMI (eastern market indicator) decreased by just a single cent to close the week at 1524ac/clean kg.
The selling week commenced with buyers basically bidding to a level through the Merino fleece section, and not pushing to buy at all. As such, prices slowly drifted without cheapening that much. From the outset of selling, the main Chinese indent operator (name changed) seemed to be more active than the past month or so. The largest volumes seen at auction for a few months was no deterrent as that operator accumulated volume rapidly. It soon became apparent to their competition that they were not slowing in their purchase intent so those local trader exporters had to exercise more muscle in order to acquire inventory to settle sold positions or provide future trading fodder.
Click here to access AWI's Wool Weekly Market Report (PDF 647 KB)