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Australian Wool Market Weekly Report (WK41)

From:Nanjing woolmarket       Date:2020-04-10 15:52:15       Share:

The Australian wool market has shown signs of improvement in this series, recording overall increases in all merino fleece types. Brokers actively encouraged only genuine sellers to enter the market, resulting in 22% of the offering being withdrawn prior to sale. This action had a twofold effect. Firstly, it reduced the overall offering, increasing demand on the lots remaining. Secondly, it increased buyer confidence, as they realised the wool still in the sale was more likely to be sold. The result was price increases across the country. The individual Micron Price Guides (MPGs) rose by 4 to 70 cents, pushing the AWEX Eastern Market Indicator (EMI) up by 14 cents for the week, which closed at 1,301 cents. An event of note this week, was the inaugural Online Open-Cry (OOC) auction, using video conferencing tool Zoom, held in Sydney on the second day of selling. An initiative suggested by the industry COVID-19 working group, in effort to work towards contingency options, as COVID-19 restrictions escalate. AWEX working together with industry, trialled OOC auctions with great success, so much so, that a decision was made to sell 61 lots before the start of the traditional Sydney auction. Two brokers offered wool under this new platform, which was well supported by buyers. This initiative was well received by all participants and provides an option to continue selling, should the physical auction rooms be closed. Next week was originally scheduled for a one-week Easter recess, however a decision was made by the National Auction Selling Committee (NASC) to roster a sale in this week (Week 42), to provide another selling opportunity for growers wanting to sell. The national offering reduces to 21,523 bales. Due to the small number of lots, only one-day sales are required.