Last week the physical wool markets return after a three week break for the July recess.
The market closed on the 11th July on a positive note, as the market bounced back from over a month of retraction. The AWEX EMI is currently sitting at 1754c, or in US dollar terms 1222c.
The large supply of drought affected wools coupled with US-China relations have impacted negatively over the past months, seeing the EMI fall to a positive seen back in 2017.
Over the three week break, the was some business conducted with overseas mills, seeing 88 bales sell online on AuctionsPlus Wool.
Buyers sought out the finer end of the market seeing 15µ and 16µ micron fleece wool sold up to 1255c and 1325c greasy or 1801c and 1882c dry, while 17µ and 18µ micron fleece wool sold up to 1484c and 1237c greasy or 2135c and 1900c dry.
The top priced lot sold online over the break was line of 14.9µ micron AAAA Merino fleece wool, with 1.5% vegetable matter, 70mm in length.
This lot was branded MOLOSTON, offered by RuralCo Wool and sold for 1590c greasy or 2268c dry. 15µ and 16µ Merino pieces sold up to 915c and 1105c greasy, and 17µ and 19µ micron Merino pieces sold up to 750c and 508c greasy.
Looking forward, there is an estimated 46,000 bales on offer, with large quantities as a result of the break. Reports from the auctions is that the market is not set to rally from its current position, but low Australian dollar will entice buyers and exporters initially.
Over the next several weeks, the supply drops seeing an estimated 35,000, 29,000 and 33,000 bales to be offered nationally.
Supply will be a challenge moving forward for the wool industry, as record mutton prices and poor lambing rates impact growers decisions across the country.
This was shown through the Australian Wool Testing Authority (AWTA) results for the month of July being down 5.9% for the total number of bales compared with July 2018.