MERINO wool demand on Wooltrade again followed the physical market buying trend last week, with most sales occurring early in the week.
Wooltrade sold 303 bales online last week, of which 91 percent or 275 bales, was Merino grown sheep or weaner fleece.
Wooltrade market operations supervisor Tom Rookyard said the Australian physical auction wool market consolidated its position with early gains and then experienced a softer closing last week, with the AWEX Easter Market Indicator gaining 17 cents on Tuesday and Wednesday, and then losing 5 cents on Thursday to close at 1434 cents clean. The West Australian market indicator 22 cents on Wednesday and Thursday to close at 1476 cents.
“Online Wooltrade saw similar trends, with flurry of wool being sold at the beginning of the week.”
Mr Rookyard said 17 micron fleece sold online for up to 1475c/kg greasy or 2007c/kg clean, and 18 micron fleece wool made up to 1418c/kg greasy or 1935c/kg clean. The 19.3 micron wool sold for 1245c/kg greasy or 1717c/kg clean and 20.3 micron fleece made to 980c/kg greasy or 1465c/kg clean.
The top price online was a two-bale line of SUPAAAA 12.8 micron Australian superfine weaners fleece, which had a very low 0.2 percent vegetable matter and was 65mm in length. This lot was branded Acaire/Armidale, was offered by Australian Wool Network and sold for 1810c/kg greasy or 2332c/kg clean.
Skirtings this week were topped by a bale of 14.4 micron Australian superfine Merino pieces, which had 1.5pc vm. This lot was branded Glen Stuart, was offered by Roberts of Tasmania and sold for 1500c/kg greasy or 1979c/kg clean.
“Looking forward, this week is the commencement of the Chinese New Year and thus, there is an expected lessening strength from Chinese mills,” Mr Rookyard said.
“In addition to this, the A-US dollar (exchange rate) has been strengthening from mid-last week which will impact on overseas mills buying.
“This corresponds with the way the market tracked last week.”
However, Mr Rookyard said in the past few weeks, supply has been the talk of the town and there is only an estimated 47,000 bales on offer this week, 10,000 fewer than last week. Even less wool is expected in coming weeks, he said.
“The question which remains is, whether this drop in supply will support the market from any lack of interest from the overseas mills.”
Click here to read the latest Wooltrade Top Prices Summary.