Australian wool auctions see steady price increases this week

A notable development is the early signs of renewed interest from European and Indian buyers in Merino wools, with Europe's largest top maker showing significant purchases of high-quality lots with lower vegetable matter (VM) levels. Merino wools ranging from 18 to 21 microns were particularly sought after. Other operators for these destinations also showed interest across all VM levels, the Australian Wool Innovation (AWI) said in its commentary for week 50 of the current wool marketing season.

The better specification Merino wools finer than 19 microns were the most well-supported sector. Despite the stronger competition from Europe and India, Chinese buyers, who have been steadily accumulating these wool types over the past few months, were keen to retain the majority of available bales, leveraging their lower rolling average prices to compete effectively against European orders.

Western Australia (WA), primarily a Merino wool selling centre, posted the highest appreciation in the AWEX Micron Price Guide (MPG) levels. The Western Market Indicator (WMI) surged by 2.4 per cent. The large price increases partly reflected a catch-up to the Eastern states' closing levels, as Fremantle (WA) did not sell last week. The previous auction week in Sydney and Melbourne saw price advances of around 15 Australian cents, the AWI commentary added.

Crossbred wool also performed well, with strong support from exporter buyers. Mid microns (27 to 29 microns) saw price increases of up to 5 per cent by the end of the week, while other crossbred types and cardings showed smaller gains.

Next week's supply concerns remain, with only Melbourne and Sydney offering a combined total of 28,000 bales, as WA will not be selling.

Fibre2Fashion News Desk (KD)