All types and descriptions were cheaper. By the middle of the sale yesterday buyers were looking for some value or a reason in any particular lot to buy it. The lots that were ‘not declared’ under the AWEX National Wool Declaration or those that were mulesed without pain relief suffered the biggest loses. While the NM declared lots were easily the least affected by the easing market. It seems a good business sense as well as good animal welfare practice to use, as a minimum, the pain relief product. Those lots along with NM or CM declared lines are available to more buyers and more regular demand and it’s during a falling market that this advantage is most noticeable.
The better wool now appears very much the best value as they are now much closer to the average Chinese types in price. As the selection deteriorates, which will happen over the next month or so, we expect the gap to widen again.
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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Almost 20% of the 36,000 bales offered this week failed to meet grower reserves. We aren’t convinced that the money isn’t enough, more the fact that they haven’t been able to adjust quickly enough to the falling trend. That does allow another 6,000/7,000 bales in grower stocks to ease any shortfall in coming weeks. We are still 13% down on offered volume compared to the same period last year and just 38,000 bales to be offered next week. We expect a deterioration in the quality of the offering to occur quite quickly now. The staple break point is moving towards the middle and this tends to reduce the value of the wool. Processing performance can be significantly affected by a high middle break.
On a very positive note, we are aware of some reasonable rain events in western NSW and Queensland in some of the worst drought affected areas. We hope it fills in more broadly as some localised storms are on the radar for the next few days.
Auction offering – current week
Selling Centres for week 16
Market Sale Offered Sold Passed In
North S 16 8342 7126 14.6%
South M 16 20229 16289 19.5%
West F 16 7513 5656 24.7%
Auction offering – next week
Market Sale Sale days Volume
North S 17 W-T 8842
South M 17 W-T 22627
West F 17 W-T 7233
If you want to see the complete Wool Sales Roster click here.