Online wool buying slumps with auction drop

Sheep Central, March 11, 2020

ONLINE wool buying halved last week as Australia’s auction market was supplied with its biggest bale offering since 2008.

AuctionsPlus technical operations officer Matt Cotton said the online platform sold 159 bales last week, about half the previous week’s result, when auction sales were suspended due to the Talman software issues.

Mr Cotton said the influx of supply proved to be too much for buyers and brokers passed in 23.7 percent of the auction offering. With supply not meeting demand, the AWEX Eastern Market Indicator dropped by 1.2pc to close at A1561c/kg clean or US1034c/kg clean, for the week.

The top-priced lot on AuctionsPlus Wool last week was a six-bale line of 17.7 micron AAAM Merino fleece wool that sold for 1320c/kg greasy, or 1823c/kg clean. The line had a yield of 72.4p with an average staple length of 108mm, a tensile strength of 30 Newtons/kilotex and 0.2pc vegetable matter content. The lot was offered by Rural Co Wool and branded Spring Valley.

A two-bale line of 18.2 micron AAAM with a yield of 70pc, staple length of 96mm, tensile strength of 23N/kt and 0.8pc vm sold for 1240c/kg greasy, or 1771c/kg clean.

A six-bale line of 18.9 micron Merino lambs wool made 1080c/kg greasy, or 1634c/kg clean. The line yielded 66.1pc.

An eight-bale line of 19.6 micron fleece with a yield of 59.3pc, staple length of 88mm, tensile strength of 30N/kt and 2.1pc vm sold for 1060c/kg greasy, or 1788c/kg clean.

An 11-bale line of 19.8 micron AAM sold for 990c/kg greasy, or 1749c/kg clean. The line yielded 56.6pc, with a staple length of 84mm, tensile strength of 25N/kt and 3.9pc vm.

An 11-bale line of 20.9 micron AAAM with a yield of 58.9pc, staple length of 98mm, tensile strength of 30N/kt and 0.5pc vm made 1039c/kg greasy, or 1039c/kg clean.

Mr Cotton said a price war between oil producers has exacerbated the effects of coronavirus or COVID-19 on global markets, bringing further falls to most sectors.

“This may bring more uncertainty surrounding consumer demand for premium products.

“Consumer statistics for February and March could be an indicator for the direction of the EMI in the short-term.”


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