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Australian Wool Market Ticks Upward

10 April 2020

The Australian wool market showed 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 Brokers actively encouraged only genuine sellers to enter the market, resulting in 22 percent of the offering being withdrawn prior to sale.

This action had a two-fold effect. First, it reduced the overall offering and increased demand on the remaining lots. Second, it increased buyer confidence as they realized 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 rose by 4 to 70 cents, pushing the AWEX Eastern Market Indicator up by 14 cents for the week as it closed at 1,301 Australian cents.

An event of note this week was the inaugural Online Open-Cry auction, using video conferencing tool Zoom and held in Sydney on the second day of selling. The initiative was suggested by the industry COVID-19 working group in an effort to work toward contingency options as COVID-19 restrictions escalate. AWEX – working together with industry – trialed 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 to roster a sale to provide another selling opportunity for growers. The national offering reduces to 21,523 bales. Due to the small number of lots, only one-day sales are required.

This information provided by AWEX

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