The one week Easter recess led to a much higher offering nationally for wool sales with a huge 50,184 bales available, even after seven per cent of the original amount were withdrawn, making it the largest sale since the first sale of the calendar year.
The increased volumes meant a third day of selling was rostered for Melbourne on Thursday, whilst Fremantle and Sydney remained at the two day standard format.
A total of 46,457 sold nationally, while 8106 of the 9344 bales offered over the two sale days in Fremantle sold.
The first day across the board saw falls in value with the Western Market Indicator (WMI) experiencing the biggest average loss of -16 cents per kilogram, while the Eastern Market Indicator fell by 6c/kg.
The value of the US dollar (USD) lifted significantly, being up by 1.5pc, on the first two sale days and this also contributed to the cheaper market conditions.
The wool auctions may have commenced under a softer tone but days two saw positive gains leading to losses across all types and descriptions.
Taking advantage of the price reduction, Chinese top makers were featured prominently in the buyers listing on day one.
There was no specific trend, with losses experienced across all Merino types and descriptions, but the good style, low vegetable matter wool types saw the most demand at the Western Wool Centre.
Bouncing back on Wednesday the market gained back ground on its losses with the WMI finishing 1c/kg up, to realise 1269c/kg at close, while the national market finished even and the EMI finished at 1142c/kg on Thursday.
The second selling day had prices firming up and starting to turn upward resulting in buyer confidence, which in turn made for a more solid market.
Dyson Jones, state manager, Peter Howie, said the wool market had basically finished the week unchanged.
"It went down and then came back up again to finish unchanged," Mr Howie said.
"Across the board it regrouped and had a stronger feel about it.
"The selection is a little dusty also and considering what is happening around the world and the larger quantity up this week, the market held up remarkably well.
"The market actually performed better than was expected, with the drop on the first day not as much as they were predicting prior to the sale."
He said there was also an element of growers who were meeting the market, especially in WA, because of the lack of rain, and this is why volumes are up at the moment.
Australian Wool Innovation (AWI) said Australian wool production continued to come under downward pressure and this was evidenced by the latest key test data release from the Australian Wool Testing Authority (AWTA).
March saw a substantial drop of -22.4pc, and this contributed to the seasonal figures dropping towards 3pc less volume tested.
The better atmosphere at local auctions on Wednesday transferred to overseas buyers overnight on Wednesday, this resulted in a stronger market on the solo Melbourne sale on Thursday.
Next week sees the IWTO congress being conducted in Adelaide, but sales will continue with over 46,000 bales up for sale nationally on the usual rostered Tuesday and Wednesday, with about 9900 of these offered in WA.
Tamara Hooper
Journalist with Farm Weekly newspaper WA.
Journalist with Farm Weekly newspaper WA.
