WOOLbrokers withdrew from sale a total of 1280 bales over two days last week, helping all market segments at the Western Wool Centre (WWC) build on the previous week's late turnaround.
Brokers had initially listed a relatively modest 8742 bales for auction at the WWC last week - already up to 4475 bales down on the peak weekly offerings of just over a month ago.
But with soft interstate wool markets and continuing uncertain global finance outlook expected to dent wool buyer confidence, with more European banks reported likely to join Credit Suisse and United States bank failures, brokers pulled a further 14.64 per cent out of the offering as a precaution against potential market over supply.
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It worked.
On the first trading day demand for good specification fleece wools continued the firming trend noted at the tail end of the previous week's WWC trading that had not been evident elsewhere.
Indicative price rises across all micron segments were fairly even, ranging from nine cents per kilogram greasy for 18 and 20 micron Merino fleece and Merino cardings, to 11c/kg for 18.5 and 21 micron fleece.
On the second day mid micron wools and Merino cardings continued to push ahead, with the 19 and 19.5 micron fleece segments leading the way, adding a further 15c and 14c respectively.
Merino cardings gained a further 10c, but the 18.5 micron fleece sector stood still at 1743c/kg and the 18 micron fleece sector could only muster a 1c rise to 1861c/kg.
Across the week, the Western Market Indicator rose 17c to finish at 1462c/kg, a much stronger performance than either the Northern (Sydney) Market Indicator which sank 7c or the Southern (Melbourne) Market Indicator which put on 9c after Melbourne traded for a third day on its own, with mid micron fleece prices there catching up to and overtaking equivalent WWC mid micron prices.
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Local trader PJ Morris Wools was the main buyer both days at the WWC, ahead of Techwool Trading and Tianyu Wools jockeying for second and third place, indicating larger wool traders in the local market are not spooked by prospects of a credit squeeze due to banks collapsing overseas.
Some of the smaller wool buyers appeared on the list only on one of the two days, but they tend to do that anyway, filling smaller or specialist orders.
This week the WWC is set to offer 10,706 bales, 3244 more than was actually offered last week after the withdrawals, while the national offering is set to jump 9277 bales to 49,501.
