An upward swing in wool prices is expected at tomorrow’s AuctionsPlus sale, market operations manager Tony Benson said.
Mr Benson said last Thursday’s AuctionsPlus sale had 12 wool brokers offering 625 lots or 3,744 bales. He said 18 wool exporters bought 2,445 bales.
“Many agree that prices for most wool types ended the week fully firm and just one lot received no bids.
“165 different farm brands were listed in this innovative auction format with most wool being fresh into store versus passed in from previous auctions.”
Mr Benson said July is usually considered the cold and dormant winter of the wool industry with a three-week break in auctions, but the online wool auction and Wooltrade kept the market busy like it was spring shearing.
“It’s interesting that 624 out of 625 lots were priced by the buyers with the majority of the top exporters participating on the day,” he said.
“Last year’s online wool auction was a turning point in the market and history may be repeating itself with prices quoted from buyers being fully firm compared to close, some edging 15-20c/kg clean higher for the 20-22 micron Merino fleece wool with fine wool less than 19 microns unchanged and carding wool trending 10 cents dearer.
“Consider that the Wooltrade Offerboard sold 988 bales for the recess, with prices for the best style and specification 20-22 micron fleece up to 40c dearer than the close, and we get a clear picture of demand firming up this week,” Mr Benson said.
“There has been some talk from China that the market could drag along for several months but in the short term prices look like they will hold ground based on what is selling on the interwebs.
Mr Benson said 3,430 bales were sold throughout the July recess online proving the old adage that buyers want to buy and sellers want to sell, when it’s right for them and in a flexible manner with minimal cost.
“This is something many other industries have been working on including Australia’s own livestock industry who transacts 17 percent of all sheep and 6pc of cattle sales through AuctionsPlus.
“It’s very positive and exciting to see the wool industry making those same in-roads after nearly 40 years of trials and studies into the ‘electronic’ marketing of the wool clip.
“The wool industry pioneered so many technologies that we take for granted today and the reality in 2014 is that Australia’s most traditional industry is still one that can grow and innovate.”