25,000 bales were eventually sold to the trade this week. This is a better indication of the volume that can realistically be consumed by the market each week with prices more stable at this level. We must avoid wildly fluctuating volumes for sale during this period. The offering of 29,000 bales was 33% less wool than what was announced for sale this time last week. Brokers and growers have considered the circumstances and withdrawn wool that was not realistically for sale. This is a very sensible approach and had a positive influence on the final market outcome. It also resulted in just a 12% passed in rate that allowed those genuine clips that were for sale, a realistic chance. We thank those brokers who worked with their clients to help reduce the volume for sale during this time. This is essential with enormous financial and production pressure on the entire global wool supply chain.
AWEX Eastern Indicator compared with 03/04/2020
Change in % +1.09
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
Change in %: +2.57
Change in %: +1.08
Change in %: -0.42
Change in %: +0.64
Change in %: +0.06
Change in %: +0.68
During such uncertain times, we do expect some more volatility in the short to medium term. An unusual step to allocate an extra sale next week, after Easter, was taken by the rostering committee. This will be a small one-day sale only to be held next Wednesday.
A range of customers, including the Nanjing wool market had, like us, called for a break in sales via a change in the roster. This has been widely discussed by the industry. There is more broad interest in the idea to limit the volume for sale each week as a preferred method to help protect the health and well-being of buyers as well as the financial stability of the market. This option would need government approval as sellers could be considered to be colluding to limit supply. The major brokers could not reach a full consensus on this issue so it’s unlikely to be pursued.
The National Auction Selling Committee (NASC) has reduced the number of lots allowed to be sold in a day as a work health and safety measure to limit the hours buyers are required to spend in the open cry auction environment.
Auction offering – current week
Selling Centres for week 41
Market Sale Offered Sold Passed In
North S 41 7520 6444 14.3%
South M 41 16712 14339 14.2%
West F 41 5263 4798 8.8%
Auction offering – next week
Market Sale Sale days Volume
North S 42 W 6256
South M 42 W 10396
West F 42 W 4871
If you want to see the complete Wool Sales Roster click here.