While the sales commenced the week with mixed emotions across the three centres, Thursday’s price signals were clearly positive leading into the three week sale recess.

The shaky start on Wednesday has been hard to explain to date, however, when the market finally turned it was clear from the support shown on lower spec fleece types the price for better measured and more stylish types were set to soar.

The inverted micron basis seen last week was largely restored as the finer microns rallied 15 to 20c for the week whilst the 19.5 to 23 micron types were par to 5 dearer.

Merino Skirtings mimicked the fleece trend whilst the crossbreeds and Merino cardings closed generally either firm or slightly dearer.

The three week recess gives us space to reflect on the past period and ponder what might be in store for the next selling season. Thankfully the price recovery experienced in the closing week, offers us a glimmer of hope for the upcoming season.

Many exporters remain unconvinced that the market environment has the capacity to post a quantum rise, especially in the superfine and fine micron categories.

As I have mentioned on several occasions the issue for wool is not all doom and gloom.

On the supply side, auction offerings for the season are down 4% whilst core test data indicates a 4.6% reduction for the financial year end. The twist is the 52% increase is wool volume less than 16.5 microns and the 10.7% increase in wool finer than 19.5 microns. Whilst this has produced some ordinary price results in the respective categories, there is a balance of good demand and waning supply in the medium merino categories and crossbreeds.

The jewel in the wool markets crown is the carding sector, especially in the short fibre fine merino categories attempting to meet the growing demand for fine wool knits. Our major export destination, China, has reduced their purchasing in Australia in line with the reduction in production howeverIndia has increased the percentage of the Australian clip by 1% of the export total as has Italy.

The word on the street is that there is an increase of wool being held on farm and in broker’s stores, and my guess is that the wool held will contain a large percentage of fine and superfine wool and possibly negligible bale numbers of crossbreds and cardings. The increase in superfine wool on hold may prolong any imminent rise in these categories. Conversely I believe that the demand for medium merino wool outstrips the available quantity at present and some exporters are reluctant to commit to offer out these types until quantities are forthcoming.