The wool market opened back up after a three-week recess to a significant price correction, as it experienced a sharp decline with all micron price indicators down across all selling centres.
The offering was just over 41,500 bales across the two selling centres.
It is reported the lack of confident buyers is largely attributed to the ongoing trade issues at present coupled with the quality of wool on offer, with a large amount of high vegetable matter and low strength wool on offer.
Reports from physical auction suggested buying at the start of auction on the first day at the southern centre was slow from the beginning to end, as much of the large quantity buyers remained absent regardless of the reported supply pressures.
The market continued to lose ground on the second day despite large quantities of the lower quality drought affected wool still being discounted.
It is also reported the southern selling centre saw strong buyer support for the better style wools, particularly on the second day, although Merino price indicators still lost value and the poorer styles were heavily discounted.
This is backed by the AWEX Eastern Market Indicator as it fell 31 cents a kilogram on Wednesday and then a further 47c/kg on Thursday to reach 1676c/kg with a pass in rate of 28.6 per cent.
The largest falls coming for 19- to 20-micron wools as large amounts of the finer wool types are being discounted, leading to the Merino wool indicators having mixed results across the two selling centres, but largely ending the week down more than 120c/kg. The only positive part of the week was the Merino cardings which went against the grain and gained 30c/kg to 66c/kg across selling centres.
The sentiment at physical auction was reflected online as there were no sales on AuctionsPlus wool last week.
This week the volume of supply increases slightly with more than 43,600 bales on offer.