Markets

Wooltrade sales wane with big AWEX wool auction bale offering

Sheep Central, August 16, 2016

Wooltrade logoONLINE wool demand waned on Wooltrade during the first post-recess physical auction sales last week.

Wooltrade market operations supervisor Tom Rookyard said the daily losses in the physical market last week were minimal, with AWEX Eastern Market Indicator falling 14 cents to 1297c/kg, although the large offering of 56,000 bales not dampen overall demand.

“The volume did mean that the quantity on offer at the physical sales met with demand, and thus buyers were not drawn to online quantities.

“In total, Wooltrade only sold 66 bales.”

He said the top-priced lot was 10 bales of 18 micron Merino fleece, branded Carslake and offered by Primaries of WA, that sold for 1046c/kg greasy, or 1496c/kg clean. The line yielded 69.9 percent, with an average staple length of 88mm, a tensile strength of 33 Newtons/kilotex and 0.9pc vegetable matter content.

A six-bale line of 19.7 micron fleece wool that yielded 68.9pc, with an average staple length of 97mm, tensile strength of 31mm and 0.2pc vm sold for 998c/kg greasy, or 1448c/kg clean.

An 11-bale line of 20.4 micron fleece sold for 983c/kg greasy, or 1423c/kg clean. The line yielded 69.1pc, with a mean staple length of 102mm, a tensile strength of 26N/kt and 0.5pc vm.

A 13-bale line of 21.6 micron wool that yielded 70.4pc, with an average staple length of 100mm, a tensile strength of 29N/kt and 0.3pc vm sold for 1004c/kg greasy, or 1426c/kg clean.

Mr Rookyard said about 42,000 bales of wool will be offered in AWEX sales nationally this week and only 35,000 bales next week. No auction sale is rostered for Fremantle in Week 8 due to the annual Wool Week conference in Melbourne.

“The tightening supply is no doubt nursing the market along as buyers and exporters continue to look forward to auction supply.

“The steady Australian to US dollar exchange rate is helping to offer stability to buyers, brokers and exporters alike, but will no doubt be monitored closely,” he said.

“The market is likely to open at similar levels to last week, helping to consolidate prices.”

Source: Wooltrade.

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