The low supply did nothing to stop the drop in the EMI, finishing the week down at 1225c, down 47c or 3.7%.
In USD terms this equates to 801c. Global uncertainty regarding the demand for wool in the coming months, combined with strong lamb and mutton prices has translated to a gradual downturn in overall wool production.
A passed in rate of 25.7%, 10% higher than last week, was an indication that many growers were not willing to accept current prices.
With demand from buyers dwindling, it is unlikely we will see any dramatic increase in supply for some time.
This could help create a floor in the EMI. Looking online, 14µ and 15µ micron fleece wool sold up to 850c and 930c greasy or 1604c and 1568c dry, as 16µ and 17µ micron fleece wool sold up to 1040c and 742c greasy or 1411c and 1451c dry.
The top priced lot online was a line of was a line of 16.8µ AAA Merino pieces which was branded C/LAMBRUK, offered by Nutrien Melbourne and sold for 1040c greasy or 1628c dry.
Last Thursday was the 3rd online wool sale held on AuctionsPlus, with over 331 bales over 64 lots were offered by companies Elders and Nutrien.
The sale saw 45% clearance at the fall of the hammer, with a 95% clearance post auction.
The usual buyers were in attendance along with 44 buyers, brokers and growers who viewed the sale. Top prices this week included:
· 20µ micron merino fleece wool branded INVER PARK offered by Nutrien Wool selling for 888c greasy
· 18.7µ micron merino fleece wool branded D/BEN offered by Nutrien Wool selling for 867c greasy
· 17.3µ micron merino pieces branded RED BANK offered by Elders Wool selling for 780c greasy
Looking forward, caution remains the name of the game. Until there is any strong indication of global economic strength, it is likely that both supply and demand for wool will remain low.