For the first time in many weeks the Australian Wool market has seen positive growth.
Not since early April has the market seen double figure growth on the AWEX EMI. Wednesday 8th April saw the indicator gain 20c to rise to 1301c.
Since then it has fallen 122c, but this week the indicator gained 9c on Tuesday followed by 4c on Wednesday to close off 1183c. A 6.6% pass-in rate across the week at the physical auctions highlights that growers are keen to sell wool at current levels.
The positive move of the market is good news for the industry which is still being impacted upon by COVID. However, no doubt the low supply offered is the real factor at play here, some business is being conducted by the lack of supply is keep the market’s head above water.
Thursday saw week 49 of the online wool auctions held on AuctionsPlus. Elders Wool and Nutrien Ag Solutions Wool both offered lines from Western Australia with 255 bales offered across 42 lots.
The strong close of the physical market flowed straight onto the online auction with a 98% clearance rate. The usual buyers logged in to participate along with 17 growers who viewed the sale. Online a line of 16µ micron merino fleece wool, with the very low 0.1% vm topped the online sale selling for 1160c greasy.
This lot was branded KNOWSLEY and was offered by Nutrien Ag Soultions. 16.9µ micron Merino weaners fleece which was 67mm long sold for 904c greasy. This lot was branded SUBASIO DOWNS and was offered by Elders. Over the last 7 days, 321 bales were also sold online on the AuctionsPlus Wool Offer Board.
Online 16µ and 17µ micron fleece wool sold up to 1022c and 1070c greasy, while 18µ and 19µ micron fleece wool sold up to 1000c and 966c. The top price lot sold on the offer board was a line of 15.9µ micron AAA merino fleece wool.
This lot has 0.5% vm, was 108mm in length and sold for 1335c greasy. This lot was branded BELLEVUE/JFF/EUCUMBENE and was offered by Jemalong Wool. While volume remains low there is some competition around the market. However, until social distancing measures are removed global economies will take a battering reducing confidence at the consumer level hurting the wool industry.