It was believed that we may see an opening level 25-30c cheaper as the AUD-USD exchange rate appreciate 3.5% had created some doubt. 

It has become expected of the wool market the opening defied all logic in Melbourne on Tuesday as buyers attached the offering with aggression. From there the market trend never faltered through to the last lot on Thursday (coincidentally when Moses & Son sold).

The MPG rises were generally 65-120c in the Merino sector with the entire merino range pushing to record levels. Skirtings, whilst 25-50c dearer, did not quite achieve the emotive state of the fleece, however, Cardings were the “even brighter star”, posting the largest percentage rise for the week with an average of a 70c increase across all centres. Crossbreds had to grapple with their largest offering of the season (32% of the national catalogue). Whilst this sector generally posted modest gains, there are still some voids in support in poorly prepared lots over 30.5 microns.

Forward market report from Michael Avery at Southern Aurora Wool:

“The auction market commenced after the recess unexpectedly strong. These gains translated into the forward markets. Front months gained 50 to 60 cents with 19.0 microns trading from 2070 to 2135 and 21.0 microns 1705 to 1755. Fine wools came in for support with May 18.0 trading to 2300 (a hedge level of almost 3,000 per bale). The surge in the auction triggered strong pricing out into the spring with 19.0 micron trading August 1935, September 1910 and October 1900.

Forward pricing seemed to steady Thursday as both exporters and processors adjusted to the new pricing levels particularly in USD terms. We expect solid bidding to be maintained next week but risk levels are elevated for both the buyer and seller”.