WOOL buyers continued to source supplies outside the auction room last week despite concerns about the impact on demand of China’s coronavirus or Covid-19 outbreak.
AuctionsPlus Wool project manager Tom Rookyard said 237 bales were sold online last week.
Mr Rookyard said the Australian wool market held its own last week, due in part to non-Chinese processing mills stepping into the market.
He said reports of European, Indian and Middle Eastern buying has stopped any market free fall and last week’s auction passed-in national average of 22pc signalled that the current offering is just meeting market demand.
“Due Australian wools reliance on China, the coronavirus has been seen as a potential thorn in the markets side, but as yet this has not come to fruition,” Mr Rookyard said.
Last week the AWEX Eastern Market Indicator lost 9 cents to close off at 1568c/kg clean or in $US terms, at US1054c/kg. The West Australian indicator fared worse, losing 42 cents to close at 1667c/kg.
“It was reported that good quality wools received strong support from buyers last week; however, the large quantity of drought-affected types were discounted,” Mr Rookyard said.
The top-priced lot sold online last week was an eight-bale line of 15.4 micron Merino pieces that made 1405c/kg greasy, or 2142c/kg clean. The line had a yield of 65.6pc, with an average staple length of 68mm, tensile strength of 26 Newtons/kt and 0.9pc vegetable matter content. It was branded Finchley/Craigie and offered by Jemalong Wool.
A four-bale line of 17.3 micron AAAM fleece wool with a yield of 71pc, staple length of 95 mm, tensile strength of 32 N/kt and 0.3pc vm sold for 1327c/kg greasy, or 1869c/kg clean.
A three-bale line of 18.4 micron AAAM made 1295c/kg greasy, or 1806c/kg clean. It yielded 71.7pc, was 98 mm long, with a tensile strength of 22 N/kt and 0.5pc vm.
An 11-bale line of 19.1 micron AAM with a yield of 76.1pc, a staple length of 89mm, tensile strength of 31 N/kt and 0.9pc vm sold for 1350c/kg greasy, or 1774c/kg clean.
A six-bale line of 20.3 micron AAAM made 1020c/kg greasy, or 1686c/kg clean. The line yielded 60.5pc, was 62 mm long, with a tensile strength of 37 N/kt and0.3pc vm.
A 10-bale line of 26-1 micron AAAFX from a non-mulesed flock with a yield of 74.8pc and 0.6pc vm sold for 840c/kg greasy, or 1123c/kg clean.
An estimated 39,000 bales are to be offered across all three selling centres this week.
“The short to medium outlook for the wool market is positive.
“Once China steps back post the coronavirus no doubt there will be a price rally,” Mr Rookyard said.
“However, it remains to be seen whether the non-Chinese mills will keep their current pace until that time.”
Source: AuctionsPlus Wool.