Positivity reigns at Australian wool auctions this week

Auctions only operated in the two eastern centres as Fremantle sat out, and the market was strong from the opening lot. “Exporters had reported follow up business to last week’s firm contracts executed, with enquiry continuing right up to the close of selling on Tuesday. Prompt demand had appeared to have met some price resistance, and the overseas clients stopped showing interest to somewhat re-assess their positions,” the Australian Wool Innovation (AWI) said in its commentary for the sale week 49 of the current wool marketing season.

“Upon sales opening on Wednesday, buyers commenced the day gauging competing buyers’ intent, but it was soon evident that the market still had a propensity to strengthen. Small gains were being registered on all types. Halfway through the days selling though, the better tested lots shot upward. Orders were needing filling. Some individual lots in the 17 to 19 micron range of Merino types became 40ac dearer, particularly European spec sale lots,” the AWI commentary added.

The supply is starting to become more of a factor to overseas mills looking for direction, AWI said. South Africa is close to its two-month break, whilst the low volume Australian upcoming auctions are an issue. Perhaps the most significant supply concern though is the trend of wool production lowering, as evidenced by the latest AWTA figures.

Next week, there will be around 33,800 bales rostered to sell on Tuesday and Wednesday. All three selling centres will operate next week, according to AWI.

Fibre2Fashion News Desk (RKS)