Last week saw all wool types escalate in price by amounts that are not normally seen during a three-week period, let alone in a single day.
Despite buyers being wary of the selection and orders to be filled, the jump this week was far beyond any expectations.
The longevity of these prices is greeted by scepticism from many in the industry and is somewhat reflected in the wool futures market which continues to trade at a discount to the physical.
Many believe current physical values to be unrealistic and or unprofitable and so participants are hesitant to lock in at a premium to the physical.
Such uncertainty and the forthcoming new season may indicate this rise will be short-lived.
Auctions in other centres of the world also experienced strong markets assisted by weakening currencies and demand to keep machinery operating.
Sadly the continued theme of negligible real demand persists across the world.
The Northern Market Indicator closed up 43 cents to 935, the Southern Indicator up 45 to 923 cents and the Eastern Market Indicator finished the week at 929 cents up 45.
Nineteen micron gained 91 c/kg clean for the week on a small offering with better style wool showing the most gains. Twenty-one micron also gained with solid buying by exporters and processors.
This week we see an offering of 53,500 bales across three centres Sydney, Melbourne and Fremantle.
Primac Elders
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