The wool market has improved after a five-week downturn and prices have increased on the back of renewed demand from China and other markets. Buyers have begun to tentatively cover requirements for the new processing season.

Merino fleece types from 17 through to 23 micron all managed to gain around 50 cents with the best style lots continuing to attract strong competition from European interests. Skirting and carding types for the knitwear markets showed more modest rises of generally 20 cents and crossbred wools finally arrested their decline as well with a modest increase.

While there have been one or two large orders coming through as the more astute spinners and weavers lock in raw material requirements until the end of this season (June 2016), most enquiry is still for small volumes for prompt or quick delivery.

Supply and quality of wool going forward is forefront in the minds of buyers at present as the seasonal conditions worsen, but so is the annual issue of quota in China. The volume of wool already imported by China this year will test the availability of quota towards the end of this year and there may be the odd delay or postponement of orders until new quota is available.