Markets

Wool demand benefits online Wooltrade business and physical auction market

Sheep Central, June 23, 2016

WOOLTRADE traded 111 bales last week as the market’s strength and supply shortfall pushed buyers online to fill orders.

Wooltrade market operations supervisor Tom Rookyard said the wool market made up lost ground as the AWEX Eastern Market Indicator gaining 9 cents to 1279c/kg clean.

“Once again the turbulent exchange rate between the Australian and US dollar impacted on the market with a loss of 7c in US dollar terms on Wednesday, but a gain of 5c in US dollar terms on Thursday.”

The top-priced Wooltrade lot last week was an eight-bale line 14.8µ micron weaner’s fleece sold for 1160c/kg greasy, or 1587c/kg clean. The line yielded 73.1 percent, with an average staple length of 90mm, a tensile strength of 34 Newtons/kilotex and 0.4pc vegetable matter content. It was branded Gums and offered by Australian Wool Network in Sydney.

In other sales, an 11-bale line of 18.7 micron fleece wool sold for 980c/kg greasy or 1410c/kg clean. The 100mm line yielded 69.5pc with a tensile strength of 29N/kt and 0.6pc vm.

A 12-bale line of 20.4 micron fleece with a yield of 61.3pc, a mean staple length of 71mm, tensile strength of 42N/kt and 0.4pc vm sold 850c/kg greasy or 1387c/kg clean.

A 10-bale line of 21.6 micron Merino wool sold for 1057c/kg greasy or 1400c/kg clean. The line yielded 75.55pc, with an average staple length of 90mm, a tensile strength of 45N/kt and 0.4pc vm.

A 10-bale line of 22.4 micron fleece sold for 840c/kg greasy, or 1384c/kg clean. The line yielded 60.7pc with an average staple length of 104mm, a tensile strength of 31N/kt and 2.5pc vm.

Crossbred wool sold to 754c/kg greasy, or 1012c/kg clean, for a 15-bale line of 26.9 micron fleece that yielded 74.5pc with 0.2pc vm.

Oddments sold to 648c/kg greasy, or 1301c/kg clean, for a three-bale line of 17.2 micron Merino bellies with 3.2pc vm that was branded Clover Park/L and offered by AWN.

A single bale of 16.1 micron Merino weaner pieces with a yield of 64.5pc, an average staple length of 78mm, and tensile strength of 33N/kt and 7pc vm sold for 820c/kg greasy or 1271c/kg clean. It was branded Ash/Pyramul and offered by AWN.

Mr Rookyard said this week in Sydney around 11,000 bales was offered at auction and in Melbourne about 15,000 bales were catalogued, with Fremantle taking a break due to the limited quantities at this time of the year.

“In addition to this, any significant drop in the exchange rate of the Australian dollar would no doubt help and assist any market rise this week.

“With recent rain across much of the Eastern states holding up shearing, and wool delivery to stores should see the market stay buoyant for the time being,” he said.

“Nevertheless, with the traditional three-week recess over the end of July is looming, there is the potential for stock to build and exceed demand in early August when auctions resume.”

Click here to read the latest Wooltrade Top Prices Summary.

Source: Wooltrade.

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