Light at the end of the tunnel for wool market

Wool-balesAfter ongoing market retraction since March, the wool market has finally made a significant step forward.

A combination of low wool prices, the USD to AUD exchange rate, and low volume offered all combined to see the AWEX Eastern Market indicator gain 39c on Tuesday to then lose 7c on Wednesday to close off at 890c.

While in US dollar terms the indicator sits at 643c. The West Australian indicator rose 27c on Wednesday to rise to 922c.

Another highlight the national pass-in rate which was an average of 5.6% across the week.

While this paints a positive picture for the industry, reports from the physical auctions suggest the hard times for the market are certainly not over.

As was pointed out this does not indicate that there has been anymore demand at a retail level from oversea’s mills and customers.

COVID is still hurting economies, and consumer demand is still low. Realistically, several key factors aligned to see interest from oversea’s.

The demand at the physical auctions, spilled over to the AuctionsPlus Offer Board with buyers and exporters purchasing 165 bales across the past 7 days.

Online 14µ and 17µ micron fleece wool sold up to 2400c and 1010c greasy or 3265c and 1345c dry. 18µ and 19µ micron fleece wool sold up to 800c and 610c greasy or 1148c and 940c dry.

While 20µ and 21µ micron fleece wool to 665c and 625c greasy or 930c and 904c dry.

The top priced lot this week was a line of 13.7µ micron AAA SUPERFINE fleece wool, which was 80mm in length.

This lot was offered by Roberts of Tasmania, branded GLEN STUART and sold for 3000c greasy or 4219c dry.

Merino pieces this week were topped by a 19.6µ micron line, which was offered by Nutrien Melbourne. This lot branded WARRIGAL PARK has 1.9% vm, was 86mm in length and sold for 545c greasy or 852c dry.

-Tom Rookyard, AuctionsPlus

UPCOMING SALES / EVENTS
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