ONLINE wool buyers sought high-yielding and sound lines on AuctionsPlus last week as the physical auction market retracted further.
AuctionsPlus operations manager Tom Rookyard said the largest price drops in a single week for the recent quarter were seen at the physical auctions in Australia last week.
Merino dusty average fine types, broader wools and the crossbred wools were most heavily affected. The market retraction was reflected in the AWEX Eastern Market Indicator closing down 59 cents to 1893c/kg clean.
“When expressed in US dollar terms our market now sits at US1309c/kg.
“This is the first time since January that the indicator slipped below 1900 cents,” he said.
Mr Rookyard said the market retraction was also felt online, with AuctionsPlus selling 83 bales last week.
“The buyers were seeking high-yielding wools, which were in no doubt unavailable at the physical auction centres.”
The top price lot online was a four-bale line of 19.1 micron Merino fleece offered by Landmark Melbourne and branded Waveney Park. It sold for 1640c/kg greasy, or 2294c/kg clean. The line yielded 71.5pc with an average staple length of 96mm, tensile strength of 36 Newtons/kilotex and vegetable matter (vm) content of 0.4pc.
A 10-bale line of 19 micron AAAFM with a yield of 67.5pc, staple length of 60mm, tensile strength of 61N/kt and 1.4pc vm sold for 1480c/kg greasy, or 2193c/kg clean.
A three-bale line of 20.5 micron AAAM with a yield of 62.5pc, length of 90mm, tensile strength of 38N/kt and 2.7pc vm sold for 1406c/kg, greasy, or 2250c/kg clean.
A five-bale line of 20.9 micron AAAM made 1423c/kg greasy, or 2248c/kg clean. The line yielded 63.3pc with a staple length of 97mm, a tensile strength of 33N/kt and 2.6pc vm.
Ann 11-bale line of 21.1 micron with a yield of 69.5pc, stapole length of 67pc, tensile strength of 58N/kt and 0.3pc vm sold for 1500c/kg greasy, or 2158c/kg clean.
A seven-bale ling of 23.2 micron AAACBK sold for 1530c/kg greasy, or 2107c/kg clean. The line yielded 72.6pc, with a staple length of 93mm, tensile strength of 42N/kt and 0.9pc vm.
Mr Rookyard said after a month of steady price retractions in March, and then a month of price consolidation in April, the wool market has finally succumbed to pressure, and slipped decidedly.
“The removal of the Chinese embargo on South African wool exports to China has been partly signalled as a cause of this market drop.
“This is due to the large volume of their wools that has been waiting for weeks to be packed and shipped for China,’ he said.
“Other countries that buy from South Africa that have not been embargoed have been unaffected.”
But Mr Rookyard said the South African situation was not the only factor which is impacting the market.
“Reports at the physical auctions suggest that the large volumes of dusty types are still looking to find a level playing field.
“Due to the higher processing costs for these types, when compared to the better types, these have struggle to find competition,” he said.
“Looking forward, there is very small supply across the nation this week with an estimated 27,000 bales to be offered at auction.
“Also to note, is that in two weeks’ time, a similarly small auction supply will be available, as the Western Australia auction centre does not have a sale scheduled,” he said.
“Looking at the sheep numbers we have sold, and the amount of premature shorn Merino and crossbred wools on offer, wool supply pressure will continue into next season.”
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