WOOL prices have fallen further at auctions around Australia as growers dropped the supply for the third consecutive week.
The Australian Wool Exchange said the softer market has done little to encourage sellers.
Just 32,899 bales were offered this week, 4858 bales fewer than last week, yet brokers still passed in 9.9 percent of the offering.
“From the opening, although buyer demand was there, the prices they were prepared to pay were noticeably below those on offer at the close of the previous week’s auction,” AWEX said.
“By the close of the first day the individual Micron Price Guides (MPGs) for Merino fleece had fallen by between 1 and 63 cents, only the 20-micron MPG in the west posting an increase (+1 cent).
“The AWEX Eastern Market Indicator (EMI) fell by 12 cents.”
AWEX said the second selling day the market settled to a fair degree, with many pockets recording increases.
“The MPG movements for 17 micron and coarser ranged between +20 and -8 cents, with strong demand on wool 20 micron and coarser pushing these MPGs higher.
“The EMI dropped 3 cents for the day.”
AWEX said the EMI has not had a daily gain since the opening sale of the calendar year (10th of January), and in the eight selling days since the EMI has dropped by 46 cents, a fall of 3.8pc.
“The skirting market tracked the fleece, general losses of between 20 and 30 cents were recorded.”
AWEX said the broader crossbred wools (28 micron and coarser) performed solidly with the MPGs ranging from unchanged to +5 cents.
“The oddments were the other highlight, and the only sector to record an overall positive result.”
AWEX said strong demand helped to push the three Merino Carding (MC) indicators up by an average of over 8 cents.
Superfines responsible for market depreciation – AWI
Australian Wool Innovation trade consultant Scott Carmody said the local and overseas buyers of Merino fleece wool approached the lower supply offered with caution.
“There was activity that indicated many operators were not wanting to exert pressure on the market which would have easily spooked the market in the low supply offering, especially considering the next few weeks have much larger (+34%) offerings.”
He said in a similar vein to last few sales, the superfine fleece categories of 18.5 micron and finer were largely responsible for the market depreciation. Falls were in the range of 30 to 40 cents. The 19 micron and broader Merino fleece wools were far better sought, but still saw slight pullbacks of 5-10 cents.
Mr Carmody said two of China’s largest top makers featured at the top of buyer’s lists, with solid but reduced support from trader exporters.
The run of smaller sales is forecast to end and there are expected to be 11,369 more bales available next week. There are currently 44,268 bales rostered for sale nationally.
Click here to see the latest AWEX Micron Guides.
Sources – AWEX, AWI.