It was another sound performance for the wool auction market. Sales were conducted on Wednesday and Thursday and another $78.1 M worth of wool changed hands. There were typically some variables but this was heavily influenced by the offering. Many reports refer to ‘large discounts’ for inferior wools. This was more of an issue in the larger volume offering in Melbourne. In Sydney, these so-called inferior types seemed to attract very good competition. In fact, the better specifications look the best value when all things are considered. Regardless, it was another positive market tone with very few holes across the offering. All types and descriptions are being keenly sought after.
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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The general quality of the selection is of great concern to us but this is not unexpected. Auction quantities are dropping too, with a maximum of 40,000 bales expected per week in the foreseeable future. There is no doubt that the small offerings of vastly variable qualities will continue to play an enormous factor in determining the market direction in the next six months. We understand demand has been reduced, that is clear, but with grower ‘first hand’ auction quantities down by 20% for the season to date, this must also be a strong consideration when thinking about the level of price we could expect in the medium term.
Auction offering – current week
Selling Centres for week 30
Market Sale Offered Sold Passed In
North S 30 9829 9031 8.1%
South M 30 22127 20135 9.0%
West F 30 9801 8583 12.4%
Auction offering – next week
Market Sale Sale days Volume
North S 30 W-T 8929
South M 30 W-T 21683
West F 30 W-T 10017
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