Wool prices continue on downwards trend

Wool prices continue on downwards trend

Wool
Wool sales are continuing to be held at the woolstores, albeit out on the show floor to allow for social distancing amidst COVID-19. Photo by Matt Tattersall.

Wool sales are continuing to be held at the woolstores, albeit out on the show floor to allow for social distancing amidst COVID-19. Photo by Matt Tattersall.

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National wool prices are continuing to fall, with losses recorded on all types and descriptions.

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National wool prices are continuing to fall, with losses recorded on all types and descriptions.

The industry benchmark Eastern Market Indicator (EMI) lost 47 cents a kilogram for the week, falling to 1225c/kg.

The loss means most Merino types have come off by about 240c/kg since late March.

And wool growers were not prepared to sell wool at these prices, with a large amount passed in.

Almost 26 per cent of the offering was passed in, a massive jump of 10.5pc on last week.

And this was after 10.3pc of the offering was withdrawn prior to sale, bringing the total number of bales available to 22,094.

This total was down 148,055 or 10.2pc on the amount offered at the same time last year.

Southern Aurora Markets partner Mike Avery described the week of sales as a "battle that continued in earnest".

"The main driver remains the general malaise of world markets and the uncertainty around recovery times," Mr Avery said.

"The weak Australian dollar had provided some support against the downward trend but the bounce off the mid-March lows of 55-65 cents against USD has taken its toll."

Due to currency movements, the EMI only lost 2USc/kg for the series.

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In its weekly wool market report, Australian Wool Exchange (AWEX) said main buyer focus continued to be on the better style wools.

"These wools were in limited supply however, as the offering was dominated by lower yielding lesser style wools," AWEX said.

AWEX said the individual Merino Micron Price Guides (MPGs) fell by 39-89c/kg, with the reductions felt across the board.

The crossbreds also reduced this series but not at the same rate as Merinos.

The crossbred MPGs dropped by 4-13c/kg, while the MPG for 32 micron fell to 271c/kg, the lowest figure since AWEX records began in 1997/98.

Techwool Trading was the biggest buyer of Merino fleece, snapping up 17.5pc of the offering.

United Wool dominated in the crossbred section, taking home 17.2pc.

And in the oddments section, it was Tianyu that bought the most at 13.3pc.

Wool sales are continuing to be held at the woolstores, albeit out on the show floor to allow for social distancing amidst COVID-19.

Next week's national offering is expected to increase to 26,328 bales.

Sydney and Fremantle are planning on only holding a one-day sale.

Fremantle will sell on Tuesday, Sydney will sell on Wednesday, and Melbourne will still sell on both days.

The story Wool prices continue on downwards trend first appeared on Farm Online.

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