Australian wool prices improved further this week, giving weight to the long-held belief of a relative global shortage of suitable greasy wool in front of machines or in stocks.

Broader microns continued to be the focus and largely carried the market higher this week. The progressive rises over the two selling days resulted in 21 micron wools jumping almost 50 cents clean for the sale, approaching 1500 cents clean. The 21 micron category briefly hit 1500 cents in June 2015, but the most notable recent encounter at this level was in 2011 and the record for any 21 indicator is 1682 cents back in 1988.

Widespread enquiry for new business, mainly China, India and to a lesser extent Europe, warned exporters of a dearer market on its way for the merino fleece segment. It was not an over-abundance of quantity that was being sought, but the fact that there were numerous users needing prompt or close in shipment, giving weight to the long held belief of a relative global shortage of suitable greasy wool in front of machines or being held as stock.

Forward sellers appeared to be well-covered and mostly just bought to advantage against the indents to supply their clients with any prompt lots needed prior to the recess.