Markets

Wooltrade buying activity slows down as physical wool market consolidates

Sheep Central, August 23, 2016

Wooltrade logoLIMITED activity was reported on Wooltrade last week as prices consolidated in the physical wool market.

Wooltrade markets operations supervisor Tom Rookyard said the AWEX Easter Market Indicator — up 1 cent to 1298c/kg clean last week — has moved within a range of 35 cents in the previous six weeks of selling – between a peak 1320c/kg in early July and the low point of 1285c/kg in mid-June.

“High (bale) volumes at the auctions has not dampened the market with overseas mills, buyers and exporters seeing a tight supply.

“If there is any significant rain, shearing and receival will be delayed,” he said.

“Once again the wool on offer at the physical auctions was close to equal demand, with only minimal pass in rates, causing limited buyer activity on Wooltrade.

“Online, 54 bales were traded, with 21 micron fleece wool selling up to 1421c/kg clean, while 18 micron merino pieces sold up 1348c/kg dry or 790c/kg greasy.”

Mr Rookyard said the top-priced lot this week was a 16.8 micron, 82mm long fleece line which sold for 1497c/kg clean or 1060c/kg greasy. This lot was branded EJC IN A DIAMOND/ROSS and was offered by Australian Wool Network.

“Looking forward, the physical wool auctions are on a day early this week, due to Wool Week in Melbourne.

“Additionally, only Melbourne and Sydney are offering with a blank week in Fremantle,” he said.

“There is an estimated total of only around 33,000 bales on offer.

“Provided the exchange rate does not rise significantly, the market should open firm and may result in a dearer market.”

Click here for the latest Wooltrade Top Prices Summary.

Source: Wooltrade.

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