The 2019/20 season continued its strong start, once again making positive ground last week.
The new financial year has seen a bounce back in prices, which were initially dampened due to external global political factors.
Confidence leading into the three week recess has been driven by Chinese demand, as well as a predicted lower available wool supply.
Lower lambing rates in the face of a tough season coupled with historically high lamb and mutton prices have been a main driver in the lower supply, which has seen Australia fall to its lowest wool production in almost 100 years.
The market on Wednesday saw the EMI jump 17c, with a 6% passed-in rate. This upward trend continued on Thursday, with the EMI finishing at 1754c, up 31c for the week.
In terms of USD, the market currently sits at 1222c. In response, online supplies were sought keenly by buyers, with sales jumping sharply to 300 bales for the week.
16µ and 17µ micron fleece wool sold to 1405c and 1485 greasy or 2013c and 2135c dry, while 19µ and 20µ micron fleece wool sold up to 1364c and 1446c greasy or 1900c and 2042c dry.
The top priced lot was offered by RuralCo wool, with the brand MOLOSTON. The buyer saw value in the 71.7% yielding, AAAA 14.9µ merino wool fleece, with a 1.5% vm, which made 1590c greasy or 2268c dry.
Skirtings were topped by a line of 16.2µ micron Merino pieces, which had a 1.3% vegetable matter. The lot was branded GAS/WINJALLOK, offered by Elders and sold for 1221c greasy or 2022 dry.
Crossbred fleece was topped by a line listed by Landmark, branded PJM/CARNGHAM. It was a 23.8µ micron line with the very low 0.8 vm, and sold for 1025c greasy or 1444c dry.
Looking forward, online supplies have increased on AuctionsPlus, with 7,261 bales on offer, as brokers look to meet any demand during the break.
As the 3 week recess has now started, buyers could be looking online to fill orders. Current volatility in global politics, and a slowdown in Chinese imports is competing with a lower wool supply in order to find a short term price equilibrium. This volatility brings opportunity, for growers, brokers and buyers alike.