AUCTIONSPLUS online wool sales lifted last week, as the industry auction price benchmark rose with the renewed demand.
AuctionsPlus technical operations officer Matt Cotton said 760 bales were sold online last week, with 89 different grower brands finding buyers.
In Australia’s physical auctions, large gains were seen across all types last week, with the AWEX Eastern Market Indicator rising 49 cents to 1594c/kg clean. In US$ terms, the EMI sits at US1104c/kg.
Mr Cotton said following a few weeks of relative stability in the EMI, the dramatic rise in price has been viewed negatively by some, calling it an over-reaction and a reflection on the sensitivity of the current market.
“The main reason for the current excitable market is likely the ongoing supply issue.
“Australia’s adverse climate conditions are reflected globally, leaving supply much lower than forecast,” he said.
“Typically, a drop in supply would lead to higher prices, but it appears global uncertainty may be counteracting this.”
Brokers offered 35,300 bales at the auctions last week, with a passed-in rate of 6.7 percent.
Highest prices paid for 17 micron Merino fleece
Consistent with 17 micron wool enjoying the biggest price gains at physical auctions, the top online price paid last week was 1480c/kg greasy, or 1907c/kg clean, for a five-bale line of 17.8 micron AAAM Merino fleece wool. The line yielded 77.6pc, with an average staple length of 81mm, a tensile strength of 33 Newtons/kilotex and 1pc vegetable matter content. The lot was branded Greenbrook and offered by WGM Wool.
Online 16 and 17 micron fleece wool sold to a top of 1304c/kg and 1480c/kg greasy or 1816c/kg and 1907c/kg clean.
Mr Cotton said the 18 and 19 micron fleece wool was the most popular online last week, comprising 43pc of all purchases and selling to a top of 1361c/kg and 1345c/kg greasy or 1847c/kg and 1818c/kg clean. The 20 and 21 micron fleece wool sold to 1305c/kg and 1205c/kg greasy, or 1795c/kg and 1769c/kg clean.
Mr Cotton said 77 bales of crossbred wool sold to a top price of 1078c/kg greasy or 1441c/kg clean for a 12-bale line of 24.7 micron AAAFX with a yield of 76.4pc, average staple length of 100mm, tensile strength of 25N/kt and 0.2pc vm.
About 36,000 bales are to be offered this week. This week’s auctions will indicate if the upward trend will continue, or if the past weeks results have overstepped the mark for the short term, Mr Cotton said.