Wool auctions in Australia resumed this week following an unprecedented cancellation of sales in week 35 due to a cyber-attack on the servers of the dominant software provider to the industry. Many, including our company, have been critical of the industry reliance on this single provider which has continuously maintained old software at a high cost to the users. However, until now, no one has come forward to provide an alternative to a diverse range of businesses throughout the industry. From core lines, to broker and buyer systems, to transport companies and wool dumps, we all rely on interactive software to maintain a stable supply chain. We, like others, will be working towards alternatives as soon as practical and the Wool Testing Authority (AWTA) has already provided an electronic interchange for buyer pre-sale catalogues, broker invoices and shipping delivery orders. The industry cooperation during this difficult period, while criticised for cancelling a sale, has been outstanding.
Wool sales resumed with 62,000 bales offered. It was going to take an enormous effort from the exporters to support this volume and they responded. 47,000 bales were sold for M$81 in value. Growers are still passing wool in, despite global health and general market uncertainty. This will put the wool market in good shape because we remain of the opinion that overall supply is on the low side.
Our focus this week was on securing some best fine wool as we felt that this will be the last opportunity for any reasonable volume until the new season. These types remained generally firm over the week as did all good specification wool certified as NM or CM under the NWD. The NM or CM mulesing status could be considered a good ‘insurance policy’ for growers looking for more stable returns as they fluctuate in price at a much lower rate than the general merino offering. Demand deeper along the supply chain is the key to this.
AWEX Eastern Indicator compared with 21/02/2020
Change in % -1.20
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
Change in %: +1.60
Change in %: +0.12
Change in %: -0.89
Change in %: -0.14
Change in %: +0.35
Change in %: -0.08
Rain is continuing to fall across much of Eastern Australia, particularly in the areas that need it the most. This will surely improve the confidence and mental space of our woolgrower friends. The rain is coming at an ideal time and those in the mixed farming regions will switch the attention to planting crops. Focus on the sheep might take a back step for a month or two. They now have grass and plenty of water. The main concern for the growers will be containing the risk of flystrike. Temperatures remain warm and there is plenty of moisture, the perfect storm for a problematic fly season.
Auction offering – current week
Selling Centres for week 36
Market Sale Offered Sold Passed In
North S 36 18043 14825 17.8%
South M 36 29315 22603 22.9%
West F 36 14808 9993 32.5%
Auction offering – next week
Market Sale Sale days Volume
North S 37 W/T 8870
South M 37 W/T 25312
West F 37 W/T 12498
If you want to see the complete Wool Sales Roster click here.