The strength of the wool market to be tested this week after large gains across all microns last week and also increases in upcoming sale quantities. As expected last week all categories fared well with rises generally between 40/60 cents per kilo with high yielding well tested wool most affected, exporters jumped in from the start to secure quantity after reasonable Chinese and Indian demand gave confidence in the salerooms. Prices eased slightly by Thursday's market as exporters waited to see how clients reacted to the price hikes and if they were willing to pay the new level, although exporters know that stock levels are low and they will be forced to buy before Xmas.

       This week will show the depth of the market, as clients resist new price levels and as mentioned we have seen rises in forecasted sale quantities. Expect sideways movement to a slightly cheaper market until we see the next wave of business gain momentum which will either be fuelled by a sharp drop in exchange rates or clients faced with the realisation that current levels must be payed as supply drops to historical lows.