Wool market has first bullish period in weeks

Wool-bales

A combination of a cheap Australian dollar an attractive market has seen increased overseas inquiry.

The impact of COVID-19 on the Australian wool market appears to have slowed for the time being.

A rush of wool sold online on AuctionsPlus as the AWEX Eastern market indicator poked it nose back up above the 1300c market.

Last week the indicator lost 6c on Tuesday to then gain 20c on Wednesday to close off at 1301c. While the West Australian indicator gained 11c and 20c across the two days to close at 1384c.

Last week was the first time since late February that the pass-in rate has been below 15% as the market had its first bullish period in several weeks. A combination of a cheap Australian dollar an attractive market has seen increased overseas inquiry.

The volatility of the market has swung back in the positive terms for the industry.

In addition to this, last week was the largest volume of wool sold online via AuctionsPlus since January 2020, with 868 bales selling across the week. 15µ and 17µ micron fleece wool sold up to 1202c and 1216c greasy or 1805c and 1694c dry. 18µ and 19µ micron fleece wool sold up to 1020c and 1105c greasy or 1520c and 1516c dry, while 20µ and 21µ micron fleece wool sold to 1050c and 1003c greasy or 1460c and 1445c dry.

The top priced lot sold online was a line of 16.6µ micron AAAA Merino fleece wool, this line as the low 0.5% vegetable matter and was 84mm in length.

This lot was offered by Australian Wool Network, branded RINGWOOD/WN and sold for 1345c greasy or 1801c dry. Looking forward there are an estimated 21,000 bales to be offered across all three centres in a 1 day sale on Wednesday, sediments around the auctions suggest that the small offering will keep the market at its current level.

What’s more, AuctionsPlus ran its first online wool auction on Thursday morning. There were over 44 lots offered by wool brokers Elders, Nutrien, Australian Wool Network and Jemalong Wool.

Online the sales saw an overall 61% clearance with 10 buying companies bidding throughout the sale, in addition to this, there were 30 other partiers including buyers, brokers and growers watching the sale. Post auction approx. 50% of passed-in lots have since been sold.

-AuctionsPlus

UPCOMING SALES / EVENTS
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