Australian wool auctions performed admirably last week, not by increasing price levels, but by holding very firm in the face of the heavy volumes hitting the market. All types and descriptions on offer recorded minor adjustments downward, and the rebased AWEX eastern market indicator (EMI) declined by just a single cent to close the week at 1524ac/clean kg.
Apart from the top two buyers, it appeared that most buyers of Merino types had a very similar attitude in their purchasing strategies. The majority were focussed on sticking rigidly to the buy-in price levels they had in mind, rather than volume. New business was reported as being sporadic early in the week, but as auction prices failed to fall away as expected, more and more interest was being shown by overseas users. By the close of selling, demand had appeared again and looks set to take the wool market into a very solid conclusion during the week beginning July 10, the report said in its analysis.
All the merino skirting types were extremely well sought after and some gains of 20ac/clean kg were extracted from buyers on those lots of less than 5 per cent vegetable matter (vm). Cardings of all descriptions depreciated by around 1 per cent as orders were being filled, and buyers showed reluctance to carry stock into the upcoming recess. Crossbred types at the finer (less than 28 micron) end were firm unchanged whilst a slight fall at the broader end (30 micron plus) occurred as negative reports of high greasy stocks in other producing nations emerged.
This week, more than 47,000 bales are up for sale. There will be a three-week recess in auction sales in Australia following this week.