The wool market has continued down its negative path last week.
Global uncertainly and further trade tensions with China have put pressure on market which continues to shed value.
The market tumble was reflected by the AWEX Eastern Market Indicator gain 1c on Tuesday, only to lose 25c on Wednesday to close off at 1155c, or in US dollar terms 756c. While the West Australian indicator fell 23c this week to rest at 1214c. Across the week there was a 12.3% pass-in rate, as growers continue to sell wool at the current level.
This Thursday saw week 47 of the online wool auctions held on AuctionsPlus. Nutrien Ag Solutions (West Australia) offered 217 bales over 25 lots.
The market retraction wasn’t lost in the online auctions, with a 44% clearance rate today. The usual buyers competed in today’s sales along with several West Australian companies which had not previously competed online. 10 growers also logged in to view the sale.
The top price lot online this week was a line of 16.7µ micron AAA Merino weaners fleece, this lot had the very low 0.9% vm, was branded WIRINGA PARK and sold for 974c greasy. This vendor also topped with their line of 16.6µ micron Merino weaners bellies, which sold for 663c greasy. Comeback lambs fleece was topped by a line of 22.4µ micron line, branded LINDLEY FARM, this lot sold for 531c greasy.
Over the last 7 days, 47 bales we sold online on the AuctionsPlus Wool Offer Board. Buyers utilized the platform at limited capacity as the offering at the physical auctions surpassed overseas demand.
However, there is still some at the finer end of the market for knitwear as buyers looked online for longer fine Merino pieces. Online 17.7µ micron AAA Merino pieces sold for 920c greasy or 1373c dry.
This line was 77mm in length, has 0.7% vm, was branded SJB/E and offered by Australian Wool Network. While 16.7µ micron Merino pieces which were 87mm in length sold for 757c greasy or 1514c dry.
This lot was offered by Elders Brisbane and branded BONNIE DOON/TARA. Looking forward, week 48 see’s an estimated 22,000 bales on offer. The small offerings is just being absorbed by demand.
Further to this, there isn’t any real sign of light at the end of the tunnel for a market turn around.