Last week the wool market finally rebounded after 2 months of falling prices, with all microns posting healthy gains. With the exchange rate dropping significantly to under 94 us cents and smaller than expected rostered sales in coming weeks exporters scrambled to complete June shipments, the big question now is will the Chinese mills have confidence to follow the sudden spike in prices?.  If they do start bidding at the new US dollar prices the market has the potential to jump very quickly (further 40/60 cents) as supply is historically low but exporters will also be nervous to offer without stock on such a volatile market.

      Medium wools 20.0 - 21.5 micron posted the biggest gains rising 40 - 50 cents for the week while all other microns were generally 20/30 cents dearer, this week there is only 22,000 bales selling Nationally and this alone will continue to fuel the market. However the fundamentals I have been speaking about for the past 2 months have not changed and this is purely a supply driven market spike, and I encourage any growers holding onto there wool to take advantage as we still expect the August - October period to be cheaper as supply increases.