Despite the moderately positive result, the 34,513 bales was met with somewhat apprehensive bidding after the sharp price increase of last week across a wide range of types resulting in the pass in rate returning relatively high 7.6%.
As the sales progressed, the Year on Year national bale offering approaches 18% less as we head into the Christmas recess in two sales.
Merino Fleece felt some pressure early in the week especially in the poorly measured fleece lots. The best specified lots between 17-18.5μ posted rises between 14c and 29c, whilst the 19-21 MPG’s lost 15-30c on the huge increases posted last week.
Merino Skirtings continued to post solid rises of up to 30c.
Crossbreds posted larger rises with the 26 MPG rising 90c and the 28 MPG posting a rise of 85c whilst the 30 MPG adding 20c to the previous week.
Merino Cardings delivered a mixed result across the centres. Sydney and Fremantle adding up to 30c on last week’s level driven by good demand for Locks and Crutchings whilst Melbourne was down 2c.
Next week’s offering 39,510 bales and whilst the increase in numbers towards 40,000 bales seems a lot, reflecting to the same time last year we saw the weekly offerings at the same time in the high 40’s to early 50,000 bale offerings.
With Wool Production Forecasting predicting 305 mkg – a 10.8% reduction for the current season – it is hard to reconcile how the demand for wool and the current supply for wool may come back into balance.
I fear that current purchasing strategies may create less price stability and more volatility as we move past 2018 and there is a bigger question mark on future wool production.
-Marty Moses, Moses and Son