This may bring more uncertainty surrounding consumer demand for premium products. Consumer statistics for February and March could be an indicator of the direction of the EMI in the short term.
Last week’s wool auctions resulted in a drop in prices across all types. Supply essentially doubled this week as a result of the previous weeks sales being canceled.
AWEX reported that the offering of 62,000 bales was the 2nd largest offering in over a decade. The influx of supply proved to be too much for buyers and saw a passed in rate of 23.7%.
With supply no meeting demand, the EMI dropped by 1.2% to close at 1561c for the week. In USD terms, this equates to 1034c. The most dramatic falls were seen in the west, where 18mic wool fell by 84c to close at 1861c.
Chinese buyers dominated the weeks auctions, competing against each other as well as the local exporters.
Online activity roughly halved on the previous weeks numbers, with 159 bales selling. 17µ and 18µ micron fleece wool sold up to 1320c and 1240c greasy or 1823c and 1771c dry, while 19µ and 20µ micron fleece wool sold up to 1060c and 1039c greasy or 1788c and 1764c dry.
21µ micron fleece sold up to 1122c greasy or 1798c dry. The top priced lot was a line of 17.7µ micron AAA Merino fleece wool, which was 108mm in length, and had the very low 0.2% vm.
This lot was offered by Rural Co Wool, branded SPRING VALLEY and sold for 1320c greasy or 1823c dry.