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Ahead of the three-week recess at the Australian wool auctions, which will resume on Tuesday August 11, 2022, the market this week went to the buyers’ favour as sellers showed willingness to accept the lowering prices on offer. The abnormally large volumes available this and the past few weeks, provided buyers plenty of choice and price opportunity.
As a result, the Australian wool auctions saw reduced values across almost all types and descriptions on offer. “By the end of the selling week 86.4 per cent of all wool offered had been cleared through to the trade which was a notable achievement as most pre-sale forecasts were suggesting much lower clearance rates,” the Australian Wool Innovation Limited (AWI) said in its commentary for the sale week 2 of the current wool marketing season.
Ahead of the three-week recess at the Australian wool auctions, which will resume on Tuesday August 11, 2022, the market this week went to the buyers’ favour as sellers showed willingness to accept the lowering prices on offer. The abnormally large volumes available this and the past few weeks, provided buyers plenty of choice and price opportunity.
“Exporters were expecting lower prices from the outset, but all were aware of the new business that was available from predominantly China but at speculative (lower than current market) levels. On top of forward sales that needed completion, this seemingly gave sufficient confidence for full buyer participation at auction, albeit cautious. The subsequent sale room activity saw prices stepping down throughout selling rather than free falling which was indicative of the reasonable demand taking advantage of large supply,” the AWI commentary noted.
The expansive buying of Australia’s largest trading house continued throughout this week. Similar competition from China’s big two top makers was evident, but indent buyers operating on behalf of other Chinese based manufacturers, commission top makers and traders stepped up to enable the absorption of the quantity, the commentary added.
Away from the very small offering of best top-making and spinners types, European interest was almost non-existent and Indian orders also were less evident, leaving China as the main destination for purchases.
Merino fleece and skirtings lost a general 15 to 35ac clean/kg for the week. The FNF (less than 1 per cent vm) sale lots were less affected due to the small selection. Many clips are carrying more vegetable matter (vm) than normal due to the good season. The standard top price China contracts generally require an average of 1.0 per cent vm, but many mills have reverted to the LB (light burr) contracts which allow for a 2 per cent vm average at a discount. Crossbred wool types, cardings and oddments sold firm unchanged +/- 10ac throughout.
Fibre2Fashion News Desk (RKS)
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