AuctionsPlus wool demand strengthens after market decline

Sheep Central, May 29, 2019

ONLINE wool buying strengthened late last week after the physical auction market’s sharp decline in national selling centres.

AuctionsPlus Wool regional sales associate Ed Murphy said 222 bales were sold online last week and 181 of these were bought from Friday afternoon and on Saturday.

Mr Murphy said it has been reported that the reluctance of buyers at the physical auctions was again attributed to the quality of wool offered, with a large amount of drought-affected wool in catalogues.

Reports from physical auction suggested buying on both days at the southern and western selling centres reflected the quality on offer, as losses were seen across all Merino micron price guides around 40-80c/kg, he said.

“A similar trend at the northern centre but to a slightly lesser extent as the first day saw significant price changes but slowed on the second day to see losses of 40-68c/kg.

“After the slow start on the first day of sales the market steadied on the second day and the week closed out with the AWEX Eastern Market Indicator decreasing 60 cents to finish at 1833c/kg and a passed in rate of 28.2 percent.”

Mr Murphy said the wool sold online followed the demand of the physical auctions, as only 13 of the bales sold were in the 24-27 micron range.

The top online prices for 16 micron and 17 micron fleece wool were 1795c/kg and 1605c/kg greasy or 2419c/kg and 2232c/kg clean. The top prices for 18 and 19 micron fleece wool were 1298c/kg and 1495c/kg greasy or 2128c/kg and 2167c/kg clean. The top prices for 20 and 21 micron fleece wool were 1130c/kg and 1522c/kg greasy or 2190c/kg and 2168c/kg clean.

The top price for 24 micron crossbred weaner fleece was 800c/kg greasy or 1080c/kg clean. A line of 27 micron crossbred weaner fleece made 725c/kg greasy or 960c/kg clean.

“Looking forward, there is a reported of 31,400 bales on offer this week, with 9000 in Sydney, around 18,000 in Melbourne and a one-day sale in Fremantle again with 4800 bales.

“There is no doubt that this volume will test the market considerably although looking forward, offerings are predicted to decline for coming weeks,’ Mr Murphy said.

Source: AuctionsPlus.


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