After a slow improve through the first couple of months of 2021, hopes of increased global demand remain for Australia's wool market, which has successfully hovered around the 1300 cents a kilogram mark during recent weeks.
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Over 46,000 bales were offered nationally this week, with the eastern market indictor remaining relatively stable, albeit some price movements amongst individual micron categories.
The EMI finished the week four cents above last weeks level at 1310 cents per kilogram, clean.
Melbourne auctions were the star of the show recording no negative movements for the series with microns either staying on par with the week prior to 40c dearer.
Sydney however recored movements between -15 and +2c and Fremantle recorded the largest losses with drops between 13 and 27 cents for 18 and 19.5-micron lines.
According to the Australian Wool Innovation market report, exporters are currently facing financial restraints predominately due to the slowing of the logistics chain lamenting these circumstances as additional business is unable to be conducted.
But it is the case of a 'slow and steady' trend for the wool market, which is not expected to change anytime soon although comforting signs have prevailed since the beginning of the calendar year.
Rabobank analyst Dennis Voznesenski said although it is expected that the EMI will trade between 1300c and 1500c per kilogram in 2021, he hopes a recovery in global consumer demand will lift prices further.
"Increased outbreaks of Covid-19 and more lockdowns through the northern hemisphere winter had an impact on global clothing retail sales through late 2020 and into 2021," Mr Voznesenski said.
"Retail sales in Japan and the US declined in January undoing much of the gains through December - and remain below December 19 levels.
"December figures for China showed sales back on par with December 2019."
He said Chinese wool imports are weighted to higher volumes in third quarter in preparation for the northern hemisphere winter fashion season later in the calendar year.
"With transport times this supports Chinese buying action through February and March. With current retail sales still below 2019 levels in most major consumer countries, current buying activity may just reflect the normal seasonal buying pattern.
"We may have still have to wait before confidence returns to the market."
Compared to the previous season there has been 54,025 more bales offered through the auction system.
National wool tested data for February shows the number of bales are up 16.5pc year-on-year.
According to data from the latest Rabobank agribusiness monthly report there has been a slight lift in yield to 64.2pc and micron which is at 21.3. This reflects the better seasons throughout 2020.
The report said wool exports were up for the month of December by 39.7pc driven by a large increase in exports to China, up 61pc compared to 2019.
Next week's national offering will see 49,883 bales on offer.
