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Non-mulesed wool auction premiums hit 200c/kg-plus

Sheep Central, February 25, 2022

CERTIFIED non-mulesed wool sold for premiums of 200c/kg-plus at auctions this week as demand matched supply.

The Australian Wool Exchange said buyer demand for specialty non-mulesed types was again extreme.

Intense bidding on these wools helped them to obtain premiums of upwards of 200 cents when compared to similar mulesed lots, AWEX said.

Trade sources said the premiums were paid mostly for Responsible Wool Standard clips of good tensile strength and low vegetable matter content. Premiums were also paid for crossbred RWS-certified clips.

AWEX said after two weeks of small losses the wool market recorded an overall increase this week, albeit by the smallest of margins.

“Originally the scheduled offering was to be 50,142 bales, but by the end of the series the actual amount offered was 46,338 bales, due in part to the 3.6 percent of wool withdrawn prior to sale.

“The strongest buyer focus was centred on good style, low vm (less than 1pc vegetable matter content) wools, particularly those possessing favourable length and strength results,” AWEX said.

“General overall increases in these wools was a driving factor in the overall positive movement in the market.

“Lesser style, higher vegetable matter lots and wools with poor additional measurements results were highly irregular, but generally easier,” AWEX said.

“These wools accounted for many of the 13pc of wools that were passed in.”

AWEX said the overall market movements across the week were minimal and this was reflected in the AWEX Eastern Market Indicator (EMI) which lost one cent on the first selling day, gained two on the second, then remained unchanged on the final day — on which only Melbourne was in operation.

The end result of these movements was a one-cent increase in the EMI to 1421c/kg clean.

Nutrien southern NSW wool manager Craig Lawson, left, with New England Wool buyer Andrew Blanch from New England Wool, with the Hillcreston-Bigga 1PP bales.

AWEX said four separate bale lines offered by Nutrien client Hillcreston/Bigga attained 1PP certification, recognising superfine wools that exhibit superlative quality, style and soundness and are prepared in the best possible manner.

The approval criteria for 1PP certification is stringent and is carried out by a panel made up of industry participants with exceptional knowledge and experience in the area of superfine wools, AWEX said.

Australia’s largest wool trader leads market – AWI

Australian Wool Innovation trade consultant Scott Carmody said the larger volumes rostered to sell again failed to appear at auction centres, and ultimately assisted prices holding.

“The eventual supply matched the current demand at this week’s Australian wool auctions.

“Minor adjustments were again recorded, but it was a week whereby the leading market indicator accurately represented the overall market results and sentiment,” he said.

“In a replica of last week, the market opened softer on Merino fleece and skirting types and sold to relatively weak competition.

“Nonetheless, the falls were restricted to just 5 to 10ac whilst the remaining sectors of cardings and crossbred types sold to largely unchanged scenario,” he said.

“Mid-week new business was written and resulted in a firming to dearer tendency for the Wednesday selling session.

“Thursday was a day of consolidation at the standalone Melbourne sale as prices ended up stable for the day after early gains.”

Mr Carmody said Australia’s largest wool trading company continued in their dominant buying mode with purchasing extending across the offering. Techwool Trading bought 16.7pc of the Merino fleece, 16.3pc of the crossbred fleece and oddments, and 18.5pc of the Merino skirtings, to top three of the four categories.

“Some very good support on the Merino fleece came from China’s largest top maker and Chinese indents.

“Skirtings and cardings saw more trader interest converted into purchases, whilst crossbreds had support from European top making and Chinese indent orders,” he said.

“Buyer attention on all Merino sectors has shifted to sale lots of better length and strength measurements and of lower vegetable matter (VM) levels.

“With the generally good season, the vm levels are rising and are expected to get progressively higher through till June, making lower vm lots more valuable.

For the third consecutive week, there are more than 50,000 bales rostered to sell over a three -day sales series next week, with Melbourne selling solo on Thursday.

Sources – AWEX, AWI.

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Comments

  1. Don Mudford, February 28, 2022

    Headline should read 200c/kg discount for non-conforming lots of wool from mulesed sheep

    • Edward H Wymer, March 4, 2022

      Don Mudford is quite correct; talk of premiums is misleading.

  2. Doug Wright, February 28, 2022

    This is pretty simple, give the market what it wants.
    The exciting thing is that by using the genetic solution, sheep that do not need to be mulesed can be produced in two sheep generations.

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