Massive buying by Australian trading house at wool auction

Australian wool auctions produced a radical change in sentiment this week due to massive buyer support from Australia’s largest trading house which competed heavily against robust Chinese indent purchasing. The positivity came in the face of a much stronger Australian dollar (AUD) versus the US dollar which would normally send the local market plummeting.

 

Australian wool auctions produced a radical change in sentiment this week due to massive buyer support from Australia's largest trading house which competed heavily against robust Chinese indent purchasing. The positivity came in the face of a much stronger Australian dollar (AUD) versus the US dollar which would normally send the local market plummeting.#

The largest Australian trading house exporter dominated buying lists this week. By week’s end this company had secured around 7,500 bales at auction across the entire type spectrum and ended up topping buying lists in three of the four wool type sectors. This single entity spend represents an estimated $12 to $14-million dollar raw wool value wool of the $55 million the industry put back into the growers hand’s this week, the Australian Wool Innovation (AWI) said.

 

Australian wool auctions produced a radical change in sentiment this week due to massive buyer support from Australia's largest trading house which competed heavily against robust Chinese indent purchasing. The positivity came in the face of a much stronger Australian dollar (AUD) versus the US dollar which would normally send the local market plummeting.#

"The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) clawed upwards this week by just 4ac or 0.3 per cent to 1442ac clean/kg. As with last week’s substantial falls, the USD EMI ascension this sale series more accurately reflects the demand scenario. The USD EMI shot up by 6.8 per cent or 54usc to a closing level of 855usc clean/kg. Bearing in mind the AUD strengthened significantly by 6.5 per cent this was a huge result given the precarious global situation," the AWI said in its commentary for sale week 39 of the current wool marketing season.

 

Australian wool auctions produced a radical change in sentiment this week due to massive buyer support from Australia's largest trading house which competed heavily against robust Chinese indent purchasing. The positivity came in the face of a much stronger Australian dollar (AUD) versus the US dollar which would normally send the local market plummeting.#

While China is now "almost back to full gear operation throughout the nation except in Hubei", wool auction markets in South Africa has been suspended for 21 days. New Zealand has apparently gone down this route as well. News this week confirmed the closure of all the wool mills and top making facilities in Italy.

 

Australian wool auctions produced a radical change in sentiment this week due to massive buyer support from Australia's largest trading house which competed heavily against robust Chinese indent purchasing. The positivity came in the face of a much stronger Australian dollar (AUD) versus the US dollar which would normally send the local market plummeting.#

Additionally, pugnacious auction competition emanated from China directly. Indents flowing from the Chinese mills helped to plug the holes of a market sinking in price falls last week. European and other non-Chinese interest was again sporadic and restricted at best. 

 

Australian wool auctions produced a radical change in sentiment this week due to massive buyer support from Australia's largest trading house which competed heavily against robust Chinese indent purchasing. The positivity came in the face of a much stronger Australian dollar (AUD) versus the US dollar which would normally send the local market plummeting.#

Merino fleece and skirtings finer than 19 micron were the most sought after types this week. Prices for that sector gained 20 to 40ac generally with the better specified sale lots seeing the best of buyer demand. The better yields were a crucial part of better pricing. The broader than 19micron types fell away by 25ac as the currency ascension put pressure on those commodity types. Similarly, the crossbred types drifted 10ac, as did cardings.  

 

Australian wool auctions produced a radical change in sentiment this week due to massive buyer support from Australia's largest trading house which competed heavily against robust Chinese indent purchasing. The positivity came in the face of a much stronger Australian dollar (AUD) versus the US dollar which would normally send the local market plummeting.#

Auction figures for the season reveal that the current season has seen 957,726 bales sold to the trade which is in stark contrast to the 1,162,631 bales sold at the same time last year. This means 17.6 per cent less moved through the pipeline.

 

Australian wool auctions produced a radical change in sentiment this week due to massive buyer support from Australia's largest trading house which competed heavily against robust Chinese indent purchasing. The positivity came in the face of a much stronger Australian dollar (AUD) versus the US dollar which would normally send the local market plummeting.#

Next week has around 46,000 bales scheduled for auction. All selling centres have been moved forward to sell on Tuesday and Wednesday and all three centres are only two-day operations, AWI said.

 

Australian wool auctions produced a radical change in sentiment this week due to massive buyer support from Australia's largest trading house which competed heavily against robust Chinese indent purchasing. The positivity came in the face of a much stronger Australian dollar (AUD) versus the US dollar which would normally send the local market plummeting.#