AUCTIONSPLUS wool sales surged last week after the suspension of South African auctions and wool exports to China due to a Foot and Mouth Disease outbreak.
AuctionsPlus operations manager Tom Rookyard said over the weekend from February 16-18, 261 bales were sold online even before reports from South Africa, indicating that a positive market was already likely.
A further 819 bales were sold online up to 22 February, including 217 bales in the first 45 minutes after the Melbourne physical auction market’s opening. The AWEX Eastern Market Indicator gained 42 cents on Tuesday, a further 26 cents on Wednesday, but eased 9 cents on Thursday to close at A2027c/kg clean, or US1451 cents.
“The much-publicised foot and mouth outbreak in South Africa has seen overseas mills, buyers and exporters to scramble to the market, after China suspended all wool exports from that country.
“Roughly 20 minutes after the Melbourne market had opened there was reports of the market rising 100 cents clean,” Mr Rookyard said.
Online 14 micron fleece sold to 2004c/kg greasy, 16 micron wool made up to 2020c/kg greasy, while 17 micron lines sold to 1840c/kg greasy and 18 micron fleece reached 1750c/kg. The 19 and 20 micron wool available on AuctionsPlus made to 1725c/kg greasy.
Mr Rookyard said the top-priced lot sold online last week was a four-bale line of 15.3 micron SUPFNAAAA with a very low vegetable matter content of 0.1 percent that sold for 2190c/kg greasy. The lot yielded 76.3pc with an average staple length of 92mm and tensile strength of 40 Newtons/kilotex. It was branded F.B.S. Walcha and sold by Jemalong Wool.
Skirtings were topped by a bale of 15.6 micron Merino pieces with 0.6pc vm that had a yield of 69.5, with a staple length of 62mm and tensile strength of 35n/kt. It was branded Yarrawonga/NE and offered by Wool Auctions of Australia. The 16 micron Merino pieces sold on AuctionsPlus last week sold to 1250c/kg greasy and the 17 micron pieces made 1200c/kg.
“Looking forward, a plethora of wool has been brought into this week’s auction sales, which will see an estimated 49,000 bales to be offered nationally.
“This wool had been brought forward, due to the sharp market rise and will certainly test the market,” Mr Rookyard said.
“However, after this week the supply will revert to 38,000 and 36,000 bales for the following weeks.
“South Africa sales are scheduled to recommence, with exports to Europe and India unaffected,” he said.
“China can participate in the sale, but cannot get the necessary health certificates to make a prompt shipment.”