ONLINE wool sales faltered in Australia last week in line with significant price drops at physical auctions.
AuctionsPlus regional sales associate Ed Murphy said all micron price indicators were down at auction selling centres last week, with the lack of buying confidence largely attributed to ongoing trade issues and wool quality.
“The sentiment at physical auction was reflected online as there were no sales on AuctionsPlus Wool last week.”
He said there was a large amount of wool of low tensile strength and with a high vegetable matter in the offering of just over 41,500 bales at auctions last week.
“Reports from the physical auctions suggested buying at the start of auction on the first day at the southern centre was slow from the beginning to end, and many buyers remained absent regardless of the reported supply pressures.
“The market continued to lose ground on the second day despite large quantities of the lower quality drought-affected wool still being discounted.”
Mr Murphy said there was reportedly strong buying support for better style wools at Melbourne auctions, particularly on the second day, although Merino price indicators still lost value and the poorer styles were heavily discounted. The AWEX Eastern Market Indicator fell 31 cents on Wednesday and then a further 47 cents on Thursday to reach 1676c/kg clean, with a pass-in rate of 28.6 percent.
Mr Murphy said the largest falls were for 19-20 micron wools, with large amounts of the finer wool types being discounted. This led to the Merino wool indicators having mixed results across the two selling centres, but largely ending the week down more than 120 cents.
“The only positive part of the week was the Merino cardings which went against the grain and gained 30-66 cents across the selling centres.”
This week, auction wool supply increases slightly, with more than 43,600 bales rostered.
“Despite supply pressures, with the ongoing trade issues, the tough season continuing and reports of the larger quantity buyers remaining largely absent from buying, it is expected the market will continue along the same path as last week.”