Supply passes demand as wool market weakens again

Wool-balesThe physical wool market corrected last week with the biggest drop experienced in the Sydney market, back 77c on Tuesday.

Wednesday saw the Northern and Southern physical markets ease a further 11c and 10c, respectively, while the Western market strengthened by 10c/kg.

The AWEX Eastern Market Indicator reflected this weakening, back 71c on Tuesday and a further 10c on Wednesday to close out the week at 1138c, or 813c in US dollar terms.

The national offering increased significantly to total an estimated 43,966 bales, up by almost 10,000 bales on the previous seven days.

Supply surpassed demand once again with the pass in rate sitting at 26.2% for the week. Off the back of a weaker market, buyers were cautious on Tuesday however a considerable level of demand remained, with buyers gaining confidence and prices remaining relatively unchanged to close off the week.

After a positive run in recent weeks, external global market factors still pose a considerable threat as COVID-19 continues to intensify in the US and Europe as further shutdowns and restrictions are announced in certain countries, prolonging the return of key markets.

The AuctionsPlus Offer Board had a quiet start to the week, selling 187 bales for the period, correcting to close out a busy month. Online, 16µ micron wool sold up to 1700c greasy or 2254c dry.

A total of 54 bales of 18µ micron wool sold, to a top of 838c greasy or 1449c dry. The top priced lot online was 15.4µ micron Australian Superfine fleece wool which sold for 1820c greasy or 2450c dry.

This 76mm wool has 0.5% vegetable matter, is INVERKIP/NEW ENGLAND branded, and was offered by Australian Wool Network.

-AuctionsPlus

UPCOMING SALES / EVENTS
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