General Market Summary

Sales have resumed this week following the mid-year recess. The market was generally expected to open lower. The limited volume of sales over recent weeks has reportedly been below the auction price levels at the close in July and there’s usually a little caution at the opening after a recess. Prices were initially around 1% below the closing basis and steadily improved from there, pushing dearer to close higher for the week. Of most interest to buyers was 19.0 micron and finer. There is no doubt a real shortage of wool still remains through the pipeline and as we head towards the traditional peek of the wool supply period, it is likely to be an interesting time ahead. This market continues to be tremendously resilient. Supply and demand will ultimately dictate the price of the raw materials. It’s that simple.