Cautious positivity is the sentiment surrounding the wool market for the final week of trading of 2019.
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Last Friday saw 'phase one' of the US-China trade deal announced.
A reduction on tariff's into the US highlighted the deal, which is set to be signed in the first week of January 2020, and will take affect 30 days later.
Prior to this, the Australian wool market ended last week on its own positive note, seeing the AWEX Eastern Market Indicator rise by 11 cents a kilogram to close off at 1503c/kg, or in US dollar terms 1035c/kg.
Online between Sunday, December 8 and Thursday, December 12, 256 bales were sold on AuctionsPlus Wool.
However, since the announcement of the deal on Friday, AuctionsPlus has seen a further 508 bales sold online, as buyers and exporters report positivity from overseas mills.
Online last week, 15 and 16-micron fleece wool sold up to 1480c/kg and 1430c/kg (greasy) or 2085c/kg and 2037c/kg (clean).
The 17 and 18-micron fleece wool sold up to 1216c/kg and 1250c/kg (greasy) or 1840c/kg and 1724c/kg (clean).
While 19 and 20-micron fleece wool sold up to 1210c/kg and 1249c/kg (greasy) or 1681c/kg and 1702c/kg (clean).
The top priced lot online last week was a line of 14.5-micron AAAA super fine fleece wool.
This line had 1.5 per cent vegetable matter, was branded NUKERING, offered by Elders Fremantle and sold for 1580c/kg (greasy) or 2337c/kg (clean).
Any continuing stabilisation of two of the world's powerhouse economies is a positive signal for the Australian wool market, which is so heavily reliant on China.
'Phase two' of the deal is set to start immediately.
It is worth noting that there are several issues unresolved, and further to this the unpredictability of Donald Trump underlies much of peoples' caution.
