LIMITED buyer activity was seen in online wool sales last week, as the physical auction market took another negative turn.
AuctionsPlus operations manager Tom Rookyard said consumer confidence continues to have an influence on global markets due to Chinese-US trade disputes and the impact of Brexit on the Chinese and UK/Europe economies.
Drought-affected wools and the lack of general quantity is another factor to consider, he said.
Mr Rookyard said the auction market retraction was reflected in the AWEX Eastern Market Indicator losing 51 cents last week to close off at 1715c/kg clean.
“This backwards step was not missed by the online market.
“Like the auctions, limited buyer activity was seen, with only 23 bales selling.”
Mr Rookyard said the past season has sent growers, brokers, exporters and the mills alike on a rollercoaster ride.
“The market has seen an all-time high for the EMI when it hit 2116c/kg in August and just last week slumped to its lowest point since 1 February 2018.”
He said AWEX has reported auction throughput in the 2018-19 season was 1,657,912 bales.
“The Australian Wool Testing Authority has released its figures showing that the total number of bales cored for the same period was down 12 percent on the previous season.”
Mr Rookyard said AuctionsPlus Wool sold 9439 bales for the 2018-19 season.
On AuctionsPlus Wool last week, the top-priced lot was a six-bale line of 19.8 micron Merino fleece wool offered by Landmark Fremantle under the brand ‘Solta’ that sold for 1204c/kg greasy, or 1923c/kg clean. The line yielded 62.6pc, with an average staple length of 94mm, a tensile strength of 17 Newtons/kilotex and vegetable matter content of 0.6pc.
A six-bale line of 18.9 micron wool with a yield of 61.6pc, average length of 82mm, tensile strength of 19N/kt, 61.6pc yield and 0.3pc vm sold mfor 1180c/kg greasy, or 1916c/kg clean.
An eight-bale line of 19.7 micron Merino fleece sold for 1204c/kg greasy, or 1914c/kg clean. The line yielded 62.9pc, was 89mm long, with a tensile strength of 14N/kt and 0.7pc vm.
A three-bale line of 21.9 micron Merino fleece sold for 950c/kg greasy, or 1673c/kg clean. The line yielded 56.8pc, was 58mmlong, with a tensile strength of 61N/kt and 0.8pc vm.
Mr Rookyard said all eyes are focused on next season.
“There is uncertainty about the market and reports of only limited business being conducted to rally the market.
“At some point the prices will hit a level for overseas mills to enter into the market, however it is unclear where and when that will be.”