Sales resumed this week after a three-week midyear recess. Buyer expectations leading into the sale were obviously pessimistic amidst a global crisis that continues to escalate. General comment amongst exporters was that business had come to a standstill over the past two weeks. Clients were likely to be waiting for sales to resume. As a result, most buyers were sitting out of the auction and those that were buying, were doing so cautiously. The weight of supply over demand was simply too great. Exporters have been concerned about the volume of wool that could potentially come on to the market when neither demand nor the finance available to fund the volume are available. Prior to the recess we were managing with sales of around 25,000 bales weekly. The 44,000 offered this week was too much under these extreme circumstances.

AWEX Eastern Indicator compared with 10/07/2020

Eastern Indicator

Close: 1006

Change in % -11.28

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Authentico Index Values

15 Micron

Close: 2147

Change in %:  -8.75

16 Micron

Close: 1853

Change in %: -9.39

17 Micron

Close: 1620

Change in %: -9.59

18 Micron

Close: 1416

Change in %: -8.58

19 Micron

Close: 1264

Change in %: -9.71

Authentico Indicator

Close: 1623

Change in %: -9.17


AWEX report that the fall in percentage terms was the largest in a week since the collapse of the Reserve Price Scheme in 1991. Not a good record but perhaps an overreaction. Some could see an opportunity in this. Next week we have 22% less volume available and considering the current situation, maybe more will be withdrawn prior to sale. Let’s hope that only genuine sellers offer their wool for sale. While we respect the decision of growers to pass their wool in, we need to tell our clients the true picture of what is likely to be available for sale. 30% was passed in this week. If we deduct 30% from the 33,000 bales rostered for sale next week, we could see only 23,000 bales eventually sold in week 7.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 06                     14505                       11002                24.2%

South                     M 06                     20072                      14914                25.7%

West                       F 06                       8187                         3995                 51.2%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 07                       T / W                        9270

South                      M 07                      T / W                       18647

West                        F 07                          W                            5496


If you want to see the complete Wool Sales Roster click here.