AUSTRALIAN wool prices improved his week, with overall increases in all Merino fleece types, as growers refused to sell about 35 percent of the scheduled offering at current rates.
AWEX senior market analyst Lionel Plunkett said brokers actively encouraged only genuine sellers to enter the market, resulting in 22 percent of the offering being withdrawn prior to sale.
“This action had a two-fold effect.
“Firstly, it reduced the overall offering, increasing demand on the lots remaining,” he said.
“Secondly, it increased buyer confidence, as they realised the wool still in the sale was more likely to be sold.
“The result was price increases across the country,” Mr Plunkett said.
Brokers also passed in 13.3pc of the eventual offering of 29,495 bales.
The individual Micron Price Guides (MPGs) rose by 4 to 70 cents, pushing the AWEX Eastern Market Indicator (EMI) up by 14 cents for the week to 1301c/kg clean.
He said an event of note this week, was the inaugural Online Open-Cry (OOC) auction, using video conferencing tool Zoom, held in Sydney on the second day of selling. It was an initiative suggested by the industry COVID-19 working group, in effort to work towards contingency options, as COVID-19 restrictions escalate.
“AWEX working together with industry, trialled OOC auctions with great success, so much so, that a decision was made to sell 61 lots before the start of the traditional Sydney auction,” Mr Plunkett said.
“Two brokers offered wool under this new platform, which was well supported by buyers.
“This initiative was well received by all participants and provides an option to continue selling, should the physical auction rooms be closed.”
Next week was originally scheduled for a one-week Easter recess, however a decision was made by the National Auction Selling Committee (NASC) to roster a sale in this week (Week 42), to provide another selling opportunity for growers wanting to sell. The national offering reduces to 21,523 bales. Due to the small number of lots, only one-day sales are required.
Click here to see the latest AWEX Micron Price Guides.