Australian wool auctions resumed this week somewhat positively following the July recess. A sluggish start was witnessed on the first day of selling which saw sale room operators basically testing the strength of their competitors’ order books and the direction of their buying intentions. As a result, mixed outcomes were established.
Surprising to most was the strength in the better Merino wool types finer than 19.0 micron, with 5 or 6 exporters in the market operating strongly on any lots better than 35Nkt (Newtons per kilotex, wool staple strength). Conversely, and just as surprising, was the weakness exhibited by the wools from 20.0 to 23.0 micron which opened to 15 to 20acents losses in levels, particularly in Melbourne where the majority of the selection in this area were being offered.
A clearer picture was garnered on the final day of auctions, as the indent operators’ levels gained strength on the back of a weaker AUD:USD exchange rate but mainly due to the fact that much of the quantity was being soaked up by forward sellers so they had to raise their price ideas to be competitive in the market. A solid strengthening in prices across the Merino spectrum was seen by the close of selling.
Click here to access AWI's Wool Market Weekly Report (pdf 457Kb).