Wool price slightly down on higher volumes

Reaching 1313c/kg on Tuesday, a lift of five cents/kg from the previous week, with 5,106 bales offered, 4,775 sold and 389 withdrawn.

Western Market Indicator fell by 15c/kg on the final day to close the week at 1298c/kg after selling 4652 bales from a total of 5020.

Nutrien Ag Solutions senior account manager wool, Cameron Henry, said while there was a slight downturn last week, buyers remain confident and there is potential for gains in the coming weeks.

"Last week's market certainly appeared to be 2 tiered, with premiums for the better types, whilst the higher vm/lower yielding lots were somewhat neglected on the back of large quantities of this type," Mr Henry said.

"Fleece wool opened with positive numbers on day one, with 19 to 20 micron wools being favored.

"The AUD probably played its part in holding the market back, finishing above 0.66.

"The is market still looking for some direction, however buyers seem to be a little more confident of potential for moderate gains, rather than a downturn in coming sales."

The week saw the Melbourne centre operate on Wednesday and Thursday due to a public holiday, therefore the Eastern Market indicator finished the week on Thursday at 1167c/kg, a loss of three c/kg from close the previous day.

Again the passed in rate in the West and nationally was low finishing the week at 6.5 per cent for Fremantle and six per cent nationally.

Nationally there were 40,055 offered with 37,648 sold, and WA contributed with its total offering of 10,126 bales, selling 9463.Australian Wool Exchange's Andrew Rickwood said the Fremantle fleece market was been unable to maintain its upward run, after three consecutive selling days of overall rises, and recorded falls across all merino types and descriptions.

All merino microns were affected.

"After two weeks of successive rises, and three without a fall, the Australian wool market has recorded a reduction this week, the dip in the market largely due to the strengthening of the Australian dollar," Mr Rickwood said.

"There were no large falls, with many pockets recording increases, particularly in the North.

"The movements in the individual Micron Price Guides (MPGs) for merino fleece ranged between plus 13 and minus 29 cents.

"The crossbred sector recorded minimal changes (MPG movements between plus 2 and minus 5 cents), the skirtings generally tracked the fleece, whilst the oddments closed slightly higher. "

He said much of the market movements for the series can be attributed to currency movement, so much so that when viewed in US dollar terms the market strengthened.

Next week's quantity is forecast to increase by over five thousand bales with a scheduled total of 45,877 bales to be offered nationally and the Western Wool Centre will contribute 9633 of these.