PRE-COVID prices were achieved for the Western Australian wool market last week at the Western Wool Centre (WWC), which was a first since the pandemic came to Australia in March.
According to Australian Wool Exchange (AWEX) statistics, the Eastern Market Indicator was up by 309 cents year on year, or 27.1 per cent.
The end result for the week - week 51 - saw the Western Market Indicator (WMI) increase by 92c to 1477 cents per kilogram clean.
The WWC offering comprised 10,378 bales in total, which was a substantial increase from the previous trading week - week 49.
The week saw 9847 bales sold, giving a clearance rate of 94.9pc.
All micron price guides increased in price, with the 19.5 micron price guide up by 138c, taking the price to 1655c, followed by the 18 micron guide which added 132c, bringing it to a total of 2146c/kg clean.
The 20 micron guide was up by 129c to 1481c/kg clean, 18.5 micron wool lifted 115c to 1797c/kg clean and the 19 micron guide added 114c to 1972c/kg clean.
The 21 micron guide saw the lowest increase, albeit still up by 94c to 1353c/kg clean.
The overall WWC fleece passed-in (5.1pc) and reoffered (12.9pc) rate were both higher than the national average of 4.6pc being passed-in and 9.2pc reoffered.
However, the WWC had the lowest withdrawal rate across the three selling centres at 1.3pc, compared to the national average of 4.2pc.
Main buyer of Merino fleece was national trader Techwool Trading, ahead of Chinese-controlled buyer Tianyu.
Key buyers of crossbred fleece, pieces and bellies was Modiano Australia, then Techwool Trading.
Techwool Trading also dominated the Merino skirtings offering, ahead of fellow national trader Endeavour Wool Exports.
The oddments offering was topped with Victoria Wool Processors and then Melbourne-based exporter United Wool Co.
"The sale finished up being one of the best I've seen since COVID-19," said Australian Wool Network (AWN) WA wool manager and auctioneer Greg Tilbrook.
"When you consider the average value per bale in August-September was $800 a bale on the floor and now we're talking $1500-$1600/bale on the floor.
"So the market has lifted a sizable amount since the real bottom in August-September."
AWN had 11,054 bales go under the hammer, with a 98pc clearance.
"It was an excellent clearance and the largest AWN catalogue put together since we have been operating in WA (10 months)," he said.
"We have been averaging about 600 bales and this was definitely our biggest sale, and it just so happened that we were able to tie it in with an exceptionally good market."
He said the large offering across the WA market was supported by strong demand from buyers.
"We have seen a definite increase in demand coming out of the northern hemisphere particularly Europe and Russia, which is largely due to an increase in retail activity," he said.
"The COVID vaccine roll-out in the northern hemisphere has led to more demand and that's flowing to the greasy prices that we have seen for growers.
"Demand from China has been good throughout COVID and it has also increased in line with the northern hemisphere.
"The Chinese domestic market has gotten through this COVID period quite well, albeit demand did reduce a bit."
Mr Tilbrook said the large offering was likely due to many producers wanting to sell before the end of the financial year and that happened to coincide with strong prices.
"With the end of the financial year coming up, some growers are making the decision to sell and timed it perfectly, especially when you consider the 21 micron guides are now at their highest peak since COVID," he said.
"It is certainly a good place to be in as we head towards the end of the financial year and sale recess."
There is no sale at the WWC next week, but trading will resume the following week 53, then as the new financial year begins, trading weeks one and two will follow.
After week two, there is a three week recess Australia-wide.
Week 53 is expected to be a smaller offering than week 51, but a massive offering of more than 50,000 is anticipated for week one, which Mr Tilbrook said is normal for that time of year.
Looking forward, he expected this demand to be short lived.
"Because we have a big recess coming up and history tells us that buyers don't carry a lot of stock over the recess, as they are worried about where the market is going to open," he said.
"So I think this market will be good into the new financial year, but why the values are there, my advice is grab your money and run - talk to your broker at looking at offering wool."
