AUSTRALIA’S wool market contraction also hit online offerings last week, cutting bale clearance rates.

AuctionsPlus Wool project manager Tom Rookyard said Nutrien Ag Solutions (West Australia) offered 217 bales in 25 lots last week, with a 44 percent clearance rate on Thursday. The usual buyers competed, plus several West Australian companies which had not previously competed online, he said. Ten growers also logged in to view the sale.

The top price online was 974c/kg greasy for a 16.7 micron AAA Merino weaners fleece line that had the very low 0.9pc vegetable matter content. It was branded Wiringa Park. The vendor also topped the oddments with a 16.6 micron Merino weaners belly line that sold for 663c/kg greasy. Comeback lambs fleece to a top price of 531c/kg greasy, for a 22.4 micron line branded Lindley Farm.

Online offer board results

In the seven days to Thursday last week, AuctionsPlus sold 47 bales on its wool offer board. Mr Rookyard said buyers utilized the platform at limited capacity as the offering at the physical auctions surpassed overseas demand.

“However, there is still some at the finer end of the market for knitwear as buyers looked online for longer fine Merino pieces.”

A 17.7 micron AAA Merino pieces line sold for 920c/kg greasy or 1373c/kg clean. This line had an average staple length of 77mm and had 0.7pc vm. It was branded SJB/E and offered by Australian Wool Network. An 87mm long 16.7 micron Merino pieces line sold for 757c/kg greasy or 1514c/kg clean. This lot was offered by Elders Brisbane and branded Bonnie Doon/Tara.

Mr Rookyard said the physical auction market continued down its negative path last week.

“Global uncertainly and further trade tensions with China have put pressure on market which continues to shed value.

“The market tumble was reflected by the AWEX Eastern Market Indicator gaining 1c on Tuesday, only to lose 25 cents on Wednesday, to close off at 1155c/kg clean, or in US dollar terms US756c/kg.”

He said West Australian indicator fell 23 cents to 1214c/kg clean. Across the week there was a 12.3pc pass-in rate, as growers continue to sell wool at the current level.

Looking forward, in Week 48 there is an estimated 22,000 bales on offer.

“The small offerings are just being absorbed by demand.

“Further to this, there isn’t any real sign of light at the end of the tunnel for a market turn around,” he said.