AuctionsPlus Wool bale sales limited as auction prices slump

Sheep Central, September 4, 2019

ONLINE wool sales were limited to just 17 bales last week as the physical auction market downturn continued.

AuctionsPlus regional sales associate Ed Murphy said the physical auction market experienced a sharp decline last week, with AWEX Eastern Market Indicator falling 67 cents on Wednesday and a further 55 cents on Thursday to reach 1375c/kg clean with a pass-in rate of 33.4 percent.

He said the lack of confident buyers, most of whom were absent despite supply pressures, has been largely attributed to the ongoing China-US trade issues.

“The western selling centre was open after a week off and saw a large amount of withdrawals before the sale as sellers refused to accept prices.

“The market continued to lose ground on the second day despite large quantities of the lower quality wool still being discounted,” he said.

“It is also reported the southern selling centre lacked support even for the better style wools as Merino price indicators lost value and the poorer styles copped much heavier discounts.”

Mr Murphy said the sentiment at physical auctions was reflected online as there were minimal sales on AuctionsPlus wool last week, with just 17 bales sold.

The top online price of 1051c/kg greasy, or 1489c/kg clean, was paid for a five-bale line of 18 micron AAAM that yielded 70.6pc, with an average staple length of 64mm, a tensile strength of 50 Newtons/kilotex and 0.6pc vegetable matter content. A four-bale line of 20.8 micron Merino stain pieces with a yield of 29.8pc and 11pc vm sold for 209c/kg greasy, or 701c/kg clean.

“This week the volume of (auction) supply increases, based on previous weeks, with nearly 29,000 bales on offer.

“With supply pressures, 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,” Mr Murphy said.


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