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Online wool sales stall as auction sellers pass-in lots at lower bids

Sheep Central, October 2, 2018

AUCTIONSPLUS wool sales stalled again last week as the Australian auction market price benchmark fell.

AuctionsPlus market operations supervisor Tom Rookyard said Australia’s wool market continued its downward trend last week, with the AWEX Eastern Market Indicator falling to its lowest point since August.

“This was reflected in the AWEX Eastern Market Indicator losing 17 cents on Tuesday, 27 cents on Wednesday and a further 10 cents on Thursday to close off at 2013 cents/kg,” he said.

“The supply at the physical auctions continued to exceed demand, with an average 12 percent pass-in across the week, meaning there was no wool was sold online on AuctionsPlus last week.”

Mr Rookyard said reports from the auctions highlighted the amount of low tensile strength wool, pushing the drop in prices.

He said supply has been a high discussion point for the wool market, with the Australian Wool Testing Authority last week releasing its test data for bales sampled during September.

“Nationally, total bales tested was down by 19pc, with NSW being down by 33pc.”

Mr Rookyard said the number of bales tested nationally from July to September this year, compared to last year, is down by 11pc, and in NSW, it is down by 17pc.

“No doubt the ongoing dry conditions coupled with a strong mutton market which up until last week has been buoyant.

“Looking forward, this week sees 42,000 bales on offer nationally, the reports from the auctions is that the market should continue its downward trend,’ Mr Rookyard said.

Source: AuctionsPlus.

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