AUCTIONSPLUS Wool managed to sell 273 bales of wool last week as market demand volatility swung in favour of some online sellers.
AuctionsPlus operations manager Tom Rookyard said the past week has brought a see-sawing wool market for growers, brokers and buyers.
“On Wednesday (last week) the coronavirus outbreak hit the market, causing a general lack of confidence.
“What’s more, the government has imposed an extended Chinese New Year break for an additional week and this has hurt the wool market on two fronts, causing slowing payments and lending from banks,” he said
“Regional workers in mills have been depleted due travel warnings or restrictions.”
Mr Rookyard said these factors were reflected in a 56-cent drop on the AWEX Eastern Market Indicator on Wednesday, it’s largest single day fall since August 2019. The West Australian indicator lost 48 cents.
“The negative market cause growers to react in a strong fashion, passing in or withdrawing up to 37 percent of the offering.
“Following such a large pass-in/withdraw from the auctions, buyers struggled to shore up supply and looked to AuctionsPlus Wool to fill orders.
“On Thursday, there was a price salvage, with the EMI rising 28 cents to close the week off at A1548c/kg, or in US dollar terms US1043c/kg,” he said.
“The volatile market saw a flurry of buying online on AuctionsPlus with 273 bales sold throughout the week.”
Online 18 and 19 micron fleece wool sold up to 1397c/kg and 1331c/kg greasy, or 1855c/kg and 1828c/kg clean. The 20 and 21 micron fleece wool sold up to 1379c/kg and 1253c/kg greasy, or 1805c/kg and 1782c/kg clean.
Mr Rookyard said the top-priced lot sold online last week was a line of 17.7 micron AAAA Merino fleece wool that made 1504c/kg greasy or 2024c/kg clean. It had an average staple length of 90mm and 1.2pc vegetable matter content. The lot was branded JAB/Wagra offered by Elders.
The top online price for Merino pieces as 1230c/kg greasy or 1946c/kg greasy for a 16.7 micron line with 1.7pc vm. This lot was branded B/H In A Box and also offered by Elders.
“Looking forward, this week there are 39,000 bales on offer across all selling centres.
“Reports from the physical auctions generally surround a weaker market this week,” Mr Rookyard said.
“When there is a global emergency declared by the World Health Organisation in a country which so heavily impacts the Australian wool market, there is no doubt to be a dent in confidence.
“However, as one buyer put it, the market has been so erratic lately and the US-China trade war appearing to calm down, if it were to open firm or have a large upswing that wouldn’t be a huge surprise.”