The first week of the new 2020-21 season resulted in the wool market taking an unexpected, but positive, turn last week.
Amid general global concerns of a second wave of the COVID-19 pandemic, many financial markets suffered a dive. But wool prices took small steps forward.
Reports of wool exporters selling - along with commission orders coming direct from China and the need for wool supplies during the coming three-week July recess - were the key factors at play.
The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) increased by 4 cents a kilogram and 2c/kg on Wednesday and Thursday respectively to close up at 1116c/kg.
In US Dollar terms, the EMI rose by 1c/kg during last week to finish at 772c/kg.
The AWEX Regional Market Indicator for the west lifted 9c/kg to end the week at 1185c/kg.
Due to the physical wool auctions closing on this strong note last week, buyers looked online - through which there were 37 bales offered by Jemalong Wool on AuctionsPlus.
The online sale had the usual buyers in attendance, along with several wool growers and brokers.
The top priced lot was a line of AAA Merino, 16.6-micron weaners fleece wool, which sold for 975c/kg (greasy). Lines of 15 and 17-micron fleece wool sold up to 958c/kg and 789c/kg (greasy).
AuctionsPlus online offer board results were also positive last week, as buyer demand spilled over to this platform, and reflected the increase in general market sentiment.
There were 69 bales sold across the seven days on the offer board.
Lots of 18 and 19-micron fleece wool sold to highs of 785c/kg and 735c/kg (greasy), or 1328c/kg and 1161c/kg (clean).
The top priced lot sold on the online offer board was a line of AAA superfine 15-micron fleece wool.
This wool had a very low vegetable matter of 0.5 per cent and average fibre length of 89mm. It was branded Glen Stuart, offered by Roberts Ltd, of Tasmania, and sold for 1670c/kg (greasy) or 2215c/kg (clean).
Looking forward, this week marks the final auction sales before a three-week break and the market should re-open with a similar positive position.
The question remains how far forward are overseas mills looking - with global economies and markets still under a cloud of uncertainty.
