After a steady start, wool prices dropped sharply towards the end of last week's live auctions.
The Australian Wool Exchange Eastern Market Indicator (EMI) was up 2 cents a kilogram after Wednesday's sales, before slumping on Thursday to record an overall weekly fall of 14c/kg and finishing at 1171c/kg. In US Dollar terms, this equated to a 12c/kg reduction to 813c/kg.
The price dip reflected wider market sentiment, as all major exchanges fell sharply on Thursday and may have hampered wool buyer confidence.
The passed in rate at auction remained steady, with 12.6 per cent of the 11,742 bales on offer not selling.
Reports from auction sales indicated buyers were seeking MF4 lots, which allowed prices for these types to remain steady with the previous week. Crossbred lots also performed strongly, which cushioned the drop in the EMI.
Week 50 of online wool auctions held on AuctionsPlus saw Elders Wool offering 71 bales across eight lots from Western Australia and Nutrien offering 42 bales across nine lots from southern Australia.
The weaker physical auction results did not seem to have a big impact on online sales clearance, with 74 per cent sold. The usual buyers logged-in to participate, along with 12 growers who viewed the sale.
A line of 21-micron Merino fleece wool, with 0.8 per cent vegetable matter, topped the online sale - fetching 885c/kg greasy. This lot was branded JACORAH and offered by Nutrien Ag Solutions.
It was a quieter week on the AuctionsPlus wool online offer board, with only 82 bales selling across the week. Of this, 71 per cent was crossbred wool, reflecting the trend in live auctions.
Through the offer board, 17 and 18-micron fleece wool sold up to 530c/kg and 555c/kg (greasy), or 1060c/kg and 1034c/kg (clean).
Lines of 21 and 23-micron fleece sold up to 583c/kg and 695c/kg greasy, or 1039c/kg and 1042c/kg (clean).
With the Dow Jones plummeting amid fears of a second wave of coronavirus in the USA, it is likely that global markets and trade will remain in turmoil.
But a relatively low offering of 16,800 bales scheduled for wool auction sales this week, supply may be low enough to keep the EMI stable
