An increase in supply fails to dampen wool market

Prices up despite higher volumes on offer

Sheep
Medium and broader wool types attracted strong interest online and at physical auction centres last week.

Medium and broader wool types attracted strong interest online and at physical auction centres last week.

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Wool prices were up last week, despite higher volumes going under the hammer.

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Last week's national wool offering increased to 50,836 bales at physical auction selling centres, and prices were also up.

There was a four cents a kilogram rise recorded on the first selling day, on Tuesday, followed by a 19c/kg jump on Wednesday and then a further 7c/kg boost on Thursday.

The Australian Wool Exchange Eastern Market Indicator closed the selling week at 1342c/kg.

Despite the increase in bales offered at auction, demand was robust and the pass in rate was only 6.6 per cent for the week.

Prices at the northern auction selling centre experienced the biggest increases last week, and its indicator was up 24c/kg to finish at 1421c/kg on the Wednesday.

As prices continue to steadily rise, Australian wool production appears to be bouncing back.

There is a predicted 2.1 per cent increase in shorn wool production expected this year, compared to 2020 levels.

The physical wool auction markets saw medium and broader wool types gain interest last week, which was also reflected on the AuctionsPlus online offer board.

Online, the 18 to 20-micron categories accounted for 49 per cent of sales.

While Chinese orders were pending, there was enough interest from other international buyers to stimulate competition in the Australian market.

This flowed through to the AuctionsPlus online offer board, which experienced a boost last week and had 1108 bales sold for the period. This was up by 904 bales on the previous period.

There were 64 bales of 15-micron wool sold online last week to a top price of 2070c/kg (greasy), or 2875c/kg (clean).

In strong demand was 16-micron wool, of which 120 bales were sold to a high of 1835c/kg (greasy), or 2503c/kg (clean).

The top priced lot online was two bales of 14.9-micron Australian Superfine SUPAAAFINE wool that sold for 2115c/kg (greasy), or 3019c/kg (clean).

This wool was branded "Currawong/TYO/ASWGA AB/299", had a staple length of 79 millimetres, a vegetable matter of 0.3 per cent and was offered by Nutrien Ag Solutions - Victoria.

This week there were 45,170 bales scheduled to be offered at auction, which was about 5000 bales fewer than last week.

After last weeks' price jumps, a smaller supply may see this increase sustained if demand remains at current levels.

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