Higher quantities have not quashed demand from the Middle Kingdom

Wool prices buoyed by Chinese demand

Sheep
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China's demand stopped the wool market from falling further last week.

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Australia's wool trade was last week given a boost by activity from Chinese buyers and, to a lesser extent, those from Europe and India.

Australia's wool trade was last week given a boost by activity from Chinese buyers and, to a lesser extent, those from Europe and India.

The offering of wool at national physical auction selling centres last week was 54,899 bales.

This was only slightly above the estimated 54,750 bales to go under the hammer, and an increase from the previous week's volume of 48,760 bales.

The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) recorded an eight cents a kilogram drop on both Tuesday and Wednesday, before recovering 1c/kg on Thursday.

The indicator finished at 1306c/kg, or US1008c/kg.

Despite the higher auction offering last week, the pass in rate fell to 12 per cent.

This was possibly due to stronger demand in Australian wool markets from Chinese interests.

China's demand could have counter-acted the increased supply and stopped the market from falling further, as many of its buyers were active last week - along with several European and Indian buyers. This kept the market buoyant.

Values on the AuctionsPlus wool online offer board fell last week, and 328 bales were sold on the platform for the period.

Similar to the previous week, broader wools - ranging from 20 to 21-micron - were in the highest demand online.

There were 159 bales of 20-micron categories sold and 86 bales of 21-micron wool cleared.

The 20-micron lots sold to a top of 985c/kg (greasy), or 1288c/kg (clean), and the 21-micron wools sold to a top of 944c/kg (greasy), or 1290c/kg (clean).

The top priced lot online was for four bales of 17.3-micron AAAM wool, which was offered by Nutrien Ag Solutions - Victoria.

This was branded "Vasey Farming" and reached 1470c/kg (greasy), or 1971c/kg (clean). It had a staple length of 71 millimetres and 0.1 per cent vegetable matter.

Looking ahead, a reduced estimated offering of 42,949 bales might see prices hold again this week - if the strong support from exporters also continues.

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