Sales have resumed this week following the mid-year recess. The market was generally expected to open lower. The limited volume of sales over recent weeks has reportedly been below the auction price levels at the close in July and there’s usually a little caution at the opening after a recess. Prices were initially around 1% below the closing basis and steadily improved from there, pushing dearer to close higher for the week. Of most interest to buyers was 19.0 micron and finer. There is no doubt a real shortage of wool still remains through the pipeline and as we head towards the traditional peek of the wool supply period, it is likely to be an interesting time ahead. This market continues to be tremendously resilient. Supply and demand will ultimately dictate the price of the raw materials. It’s that simple.
Each indicator is expressed by a number representing a market quotation for a selected range of types and is not a price expression and it’s not influenced by currency fluctuations.
Wool indicators are anyway based on Australian Dollar.
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We were a little surprised at the volume of fine wool on the market in this first sale of August. We understand shearing dates are well in advance as growers push to take advantage of wool prices and to ensure the wool comes of their sheep while the stock remain in reasonable condition. Production levels are expected to decline due to the drought. This has become a significant drought. Arguably the worst on record for many and it must impact on the volume and quality of fine wool this season.
Each season the supply of better fine wool has moved earlier and earlier and this season is expected to follow that trend.
Auction offering – current week
Selling Centres for week 06
Market Sale Offered Sold Passed In
North S 06 17855 16975 4.9%
South M 06 23258 22222 4.5%
West F 06 8302 7879 5.1%
Auction offering – next week
Market Sale Sale days Volume
North S 07 W-T 13216
South M 07 W-T 19826
West F 07 W 4248
If you want to see the complete Wool Sales Roster click here.