The Australian wool industry is feeling the full effect of COVID-19.
The global pandemic is well and truly wreaking havoc on the market as a high level of uncertainty and very little direction as to when life will return to normal causing low demand.
This week the AWEX Eastern Market indicator lost 17c and further 38c to fall to 1170c greasy or in US Dollar terms 753c.
While the West Australian indicator lost 64c close off at 1246c. Growers appear to be resisting the falling market with an 18.4% pass-in rate this week. Last Thursday saw week 45 wool auctions held online on AuctionsPlus.
177 bales were offered by broking companies Nutrien and Roberts of Tasmania. The sale saw a 43% clearance with all the usual buyers participating.
Additionally 21 other brokers and growers logged in to view the sale. The sale was topped by a line of 17.2µ micron Merino fleece offered by Roberts Wool.
This lot was branded LOWICK and sold for 1156c greasy. Merino pieces were topped by a line of 15.9µ micron lot also offered Roberts, branded L/ROC, selling for 1084c.
Merino weaners fleece was topped by a 47mm line branded DAL/A, offered by Nurtrien Wool. This lot sold for 873c.
Online on the AuctionsPlus Wool Offer Board saw limit but steady buyer support across the past 7 day’s (1st May-7th May). 122 bales sold online, with the finer end of the market drawing buyer interest. Online 14µ and 16µ micron fleece sold up to 1205c and 1023c greasy or 1950c and 1719c dry.
The top price sold online on the AuctionsPlus Offer Board was a line of 15.6µ micron SUP AAAA merino fleece wool, which was offered by Australian Wool Network, branded COOLONG and sold for 1245c greasy or 2021c dry. Looking forward, week 46 see’s an estimated 26,000 bales to be offered at the physical auctions.
While there is a high level uncertainty around the wool market currently, there is reports that some overseas mills are starting to see the current levels attractive to buy at, offering a small glimmer of hope.