Woolgrowers reject price fall amid lesser competition
Australian woolgrowers baulked at reduced competition on their woolclips resulting in a 17.6 per cent national pass-in rate on last week’s 34,084-bale offering.
Australian Wool Exchange senior market analyst Lionel Plunkett said the softer market had the Eastern Market Indicator off 39¢/kg to close at 1555¢/kg clean.
“The medium microns were hardest hit, falling on the first day by 28 to 45¢/kg across all three centres,” he said.
“The market continued to track downward on the second day of selling, with the exception of Fremantle.”
Mr Plunkett said Fremantle, which sold last, managed a small price increase on Thursday, between 5¢ and 10¢/kg, which set a positive tone for the next week.
“The Western Market Indicator had the smallest reduction, down 25¢/kg to 1666¢/kg clean,” he said.
“Overall, price reductions have again met with seller resistance.”
With the number of bales sold at auction this season 22 per cent less than during 2018-19, and only six weeks of the selling season until Christmas recess, speculation is for buyer confidence to return.
West Coast Wool auctioneer and key accounts manager Danny Burkett said as comparable volumes continued to fall, a new trading level would unravel.
“Growers will be able to bank on a more satisfying resistance level which will build confidence within the industry,” he said.
“Talks of the cancellation of existing tariffs in the US and China trade relations and the possible signing of a Trade Agreement in coming weeks is also a potential game changer.”
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