A LIFT in Australia’s wool auction market last week has translated into rejuvenated demand for lines offered online, AuctionsPlus has reported.
AuctionsPlus operations manager Tom Rookyard said after well over a month of retractions, the auction market opened the 2019-20 season positively last week.
“This market positivity has flowed online to AuctionsPlus Wool with buyers securing 51 bales at healthy levels on Monday and Tuesday (this week) prior to auction commencement.”
Mr Rookyard said before the physical auctions started last week, there was reports that destinations for our wool that have not been buying were enticed to enter the market.
“These included India, Europe and China mills, that saw attractive levels,” he said.
“Coupled with this, mills needed to take some stock for the July recess and there was some settling of the US-China trade talks.
“This all added up to a positive market.”
The AWEX Eastern Market Indicator initially lost a few cents as quotes settled early last week, but with a low 6 percent pass-in rate, Mr Rookyard said. Then on Thursday the EMI gained 13 cents to close at 1723c/kg clean, he said. In $US terms, the market is currently sitting at 1212c/kg.
“The positivity was seen in the online market, with AuctionsPlus selling 136 bales throughout the first week of the season,” Mr Rookyard said.
The top price paid online was 1415c/kg greasy, or 1957c/kg clean, for a 14-bale line of not-declared 18 micron AAAM with a yield of 72.3pc, an average staple length of 99mm, tensile strength of 22 Newtons/kilotex and 0.3pc vegetable matter content. The lot was branded Perilluo/Estate and was offered by Primaries of WA.
A 15-bale line of 16.4 micron Merino fleece sold for 1235c/kg greasy, or 1995c/kg clean. The line yielded 61.9pc, was 85mm long, with a tensile strength of 39N/kt and 2.5pc vm.
A six-bale line of 17.9 micron AAM with a yield of 62.8pc, average staple length of 81mm, tensile strength of 26N/kt and 3.2pc vm sold for 1225c/kg greasy, or 1951c/kg clean.
A 10-bale line of 19.4micron AAAM made 1365c/kg greasy, or 1999c/kg clean. The line yielded 68.3pc, was 99mm long, with a tensile strength of 35N/kt and 0.8pc vm.
A 13-bale line of 20.2 micron AAAM declared as using pain relief with a yield of 62.4pc, staple length of 77mm, tensile strength of 48N/kt and 0.5pc vm sold for 1245c/kg greasy, or 1995c/kg clean.
Mr Rookyard said the online supplies contained some very good quality types and drought-affected wools.
“Looking forward, there is an estimated 33,000 bales to be offered nationally this week, before the market closes for the traditional July 3 week recess.
“Comments from the auctions floors indicate further positive sentiments,” Mr Rookyard said.
“A major factor is that Donald Trump met with President XI Jinping at the end of G20 summit.
“This should continue to provide some confidence to global economies and stability in the market for growers, brokers, buyers and mills alike,” he said.