The wool market experienced a slight decline last week with most micron price indicators down across all selling centre’s.
It is reported the reluctance of buyers is again attributed to the quality of wool on offer with a large amount of drought affected wool in this week’s offering.
Reports from physical auction suggested buying on both days at the Southern and Western selling centres reflected the quality on offer as losses were seen across all Merino micron price guides around 20-40ac.
A similar trend at the Northern centre but to a lesser extent as the first day saw little price changes but closed on the second day to see losses of 15-20ac.
This is backed by the AWEX Eastern Market Indicator as it fell 3c on Wednesday and then a further 8c on Thursday to reach 1952c.
The largest gains coming for 26µ to 28µ micron wools as demand for crossbred wool types is still firm. This sentiment at physical auction was reflected online as AuctionsPlus wool sold only 38 bales.
Selling to a top of 1383c greasy or 2195c dry for a line of 20.4µ micron Merino fleece. Top price for 17µ and 18µ micron fleece wool was 1244c and 1294c greasy or 1902c and 1914c dry.
Given the surge in demand for crossbred fleece, activity online was relatively quiet this week with 4 of the bales sold online being crossbred.
Crossbred fleece was topped by a line of 24µ micron fleece wool at 1210c greasy or 1714c dry. This week the supply remains steady based on previous weeks with 33,300 bales on offer.
Looking forward, at some point the Chinese mills will have to re-enter the market with mounting supply pressures to meet demand but there are no reports of this happening at this stage.
It is still expected the market will continue along the same path as last week although with 51 bales sold this week as of Tuesday morning online, early buying activity online may suggest a change in sentiment at physical auction this week.