DESPITE the Australian wool market making good headway last week to reach its third highest price level for the season, market commentators are still cautious of what may lie ahead.
The wool market last week defied the US exchange rate pressures to lift the eastern market indicator by 1.2 per cent to 867 cents a kilogram (clean).
Micron price gains varied from 0.9pc in 23 microns to 2.8pc at 18.5 micron range, with most types closing around 10-20 cents higher for the week.
However wool commentators remain cautious about market volatility given the talk of a double-dip-recession, but they do acknowledge demand has lifted.
"There is definite upbeat momentum in the market," Victorian Wool Processing wool buyer Steve Noa said.
After wool markets received its first offering of more than 50,000 bales for the season last week, the September bale figures, by contrast, reaffirmed analyst’s predictions of significant wool shortages this year.
Australian Wool Testing Authority September monthly comparisons of total lots, bales and weights for September year on year were -11.6 per cent, -12.2pc and -12.3pc respectively.
Progressively AWTA has tested 87.3 million kilograms this season compared with 96.4 Mkg at the same time last season.
Just over 48,000 bales have been offered in three centres this week.
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