Australian Wool Market Down Slightly as Volume Decreases
September 7, 2018
This week’s sale offered 38,549 bales, which was an increase on last week. However, as with all other sales in 2018-19, total volume was lagging when compared to the same sale last season. In the seven auctions held for the current selling season, the cumulative national total is 39,000 bales lower (down 12.5 percent) than for the same period in 2017-18.
The exchange rate gave overseas processors some assistance with their purchase cost when the local currency continued to trend lower against the U.S. dollar. Midway through the week, the AUD hit 71.50 U.S. cents, a two-year low, before staging a recovery to finish at 71.68 cents late on Thursday. Price wise in local terms, the market opened on a strong note and resumed its upward trajectory from last week. The first day recorded widespread increases, but the momentum could not be maintained, and prices eased back on Thursday to the tune of 20 to 30 Australian cents.
At the close, price variations were mixed with Melbourne showing 20 cent falls when compared to its unusual Friday sale, while Sydney recorded 20 cent gains when compared to the Thursday. Merino skirtings found good support and were mostly firm on the previous sale. The smallest national crossbred offering in three years had mixed results; firming in some areas and losing ground in others. Merino cardings were also reasonably limited, and the Merino Carding Indicators closed with only minor movements.
Next week just under 35,000 bales are expected nationally in three selling centers.
- PRODUCER EDUCATION
- AUCTIONS & LAMB PACKERS
- WOOL & PELT