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Strong demand for medium Merino fleece spills to online platform

Sheep Central, April 24, 2018

STRONG demand for medium Merino fleece wool on the physical auction market last week spilled into increased AuctionsPlus sales online.

AuctionsPlus market operations officer Ed Murphy said the physical auction market continued its upward trend last week with strong buyer demand and willing sellers.

“This was seen across all microns and descriptions closing the week out with only 3.4 percent passed in.

“The AWEX Eastern Market Indicator rose 20 cents on Wednesday and a further 29 cents on Thursday to finish the week at 1825c/kg clean as it approaches record territory,” he said.

“This comes on the back of projected decline in supply and a willingness to buy from overseas mills, particularly China.

“AuctionsPlus Wool reflected this with a strong week of selling that saw 565 bales sold, the majority of these at the back end of the week.”

Apart from stronger results for crossbred fleece lines in Melbourne AWEX auctions last week, medium and broad diameter Merino fleece recorded some of the biggest price increases – from 46-78c/kg clean.

On AuctionsPlus, 158 bales of 21-22 micron fleece were traded, including 105 bales of 22 micron wool. Mr Murphy attributed this strong demand for medium Merino wool to reports of limited offerings in the physical auction centres.

“This saw strong competition at market and as a result prices for 22 micron and coarser wool prices lifted 40 cents-plus across all sale centres.”

The top price for 21 micron wool on AuctionsPlus last week was for a two-bales line that sold for 1400c/kg greasy, or 1936c/kg clean. An eight-bale line of 22 micron fleece wool sold for 1410c/kg greasy or 1888c/kg clean.

AuctionsPlus’ top price for the week was 1164c/kg greasy or 2732c/kg clean for a 15.3 micron line branded Cudal Park/Natural Food & Fibres offered by Jemalong.

A single bale of 17.4 micron fleece sold for 1675c/kg greasy, or 2386c/kg clean, and a 10-bale line of 18.5 micron wool made 1460c/kg greasy, or 2135c/kg clean.

A four-bale line of 19.2 micron fleece sold for 1395c/kg greasy, or 2036c/kg clean, and 10-bale line of 20.6 micron fleece made 1360c/kg greasy, or 1946c/kg clean.

Auction sales on Tuesday and Thursday this week are expected to be solid, based on last week’s result and due to short supply.

Source: AuctionsPlus.

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