The physical wool auctions opened last week to limited buyer demand.
With COVID-19 causing extremely low consumer confidence and no direction for the industry, the Australian wool marketed suffered one of its largest falls.
The AWEX Eastern Market Indicator (EMI) fell 101c on Tuesday and 27c on Wednesday to fall to 1006c, or in US dollar terms down to 737c.
This fall represents the largest daily fall of the EMI since August 2019, the largest weekly fall since April 2020, and the market is 670c lower than the same time last year. While the West Australian indicator lots 123c and 24c to close off at 1055c.
Reports for the physical auctions highlight that some oversea’s mills decided to spectate only in the auctions, while others took advantage of the current position and bought.
This caused low demand for the nearly 50,000 bales on offer. What’s more, it was reported that once growers saw the current levels at which wool was being traded they met the market with many passed in lots level of wool being sold after the fall of the hammer.
Online Wool Auction Results – There was a total of 138 bales on offer in todays Elders Southern auction. Despite the easing of the EMI, the online auction fared well with strong buyer demand.
The usual buyers were logged resulting in an 86% clearance. The top price was returned by a line of AAA Merino 17µ micron fleece, with 1% VM selling for 1030c greasy.
This lot was 78mm in length and offered by the brand WG/WED. 19µ micron Merino pieces offered by the same grower achieved 602c greasy.
This lot is 2.1% VM and is 64mm in length, whilst COORAMINTA offered 19.1µ micron Merino bellies returning 400c greasy. This lot is 3.9% VM and is 81mm in length.
Online Offer Board Results – The past week has seen the AuctionsPlus online offer board used sparingly by buyers have little demand or need to look for wool outside of the physical auction. 5 bales were sold over the last 7 days to see 18.6µ micron merino pieces sell for 310c greasy or 729c dry.