Industry News

Industry News

While demand (or lack of it) has been the focus for the industry in recent months, there have been significant developments on the supply side in Australia. According to the data from AWEX’s Weekly Market report, there has been 326,126 bales offered for sale at auctions so far this season, with 279,981 bales sold. Over 10% of the wool offered this season to date is re-offered wool. These season-to-date figures compare with the statistics from last season to week 14: 334,705 bales offered and 270,255 bales sold. Of the bales offered, 11.4% were re-offers last season to week 14. In other words, there has been a 2.6% decline in the number of bales offered this season BUT there have been 9,726 bales (3.6%) more sold this season than last season. The pass-in rate this season-to-date is 13.9%, compared with a pass-in rate of 19.3% last season to week 14. This lower pass-in rate and higher total number of bales sold this season has been despite the average EMI this season of 986 c/kg being 37% lower than last season’s average to week 14 of 1555 c/kg.

The change in auction offerings for this season to date is quite a bit smaller than the decline in the weight of wool tested. AWTA reports that to the end of September, the weight of wool tested was 7.8% lower than for the same period in the 2019/20 season. This decline comes even though the weight of wool tested in September was 7.8% higher than the weight tested in September 2019. The only state to record a drop in the weight of wool tested in September was Queensland, with a sharp 29% fall compared with September 2018. In contrast, Tasmania recorded a 35% increase in wool tested in September (on a Wool Statistical Area basis). There are signs of recovery for New South Wales (NSW) following the long-drawn-out drought in that state, with a 15% lift in wool tested in September.

Further details, including a chart showing the volume of wool tested in each state for the 2020/21 season to September compared with the previous five seasons, are contained in the full edition of this week’s Weekly Newsletter. Available to NCWSBA members.

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The National Council of Wool Selling Brokers of Australia

 

National Council of Wool Selling Brokers of Australia

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