The Australian wool market had a difficult week at the office, with significant losses in all sectors across all three selling hubs.
The passed-in rate and weekly offering were the only items that increased this week.
Industry experts are now questioning the extent to which the new COVID Delta epidemic in China is affecting Australian wool pricing, among other things.
Wool gathered over the traditional mid-year vacation, raising the national offering to 49,181 bales, despite the fact that the scheduled offering was significantly higher, about 57,000 bales. Approximately 7% of the initial selection was removed before sale.
The Eastern Market Indicator (EMI) dropped by 56 cents to finish at 1372 cents per kilogram, clean, equating to a 3.9pc reduction. Individual prices however, dropped from 2.5 to 5pc. The price falls were reflected in the clearance rate with a third of all offered nationally passed in. Reports were that demand from China was poor in comparison to the pre-recess sentiment but India, Italy and Czech Republic showed similar support. The latest outbreak in China appears to be widespread and will impact the economy, says Australian Agriculture Minister.
The short-term hit to economic growth in China will be directed at consumer spending, hospitality and travel in particular, he says. Next week’s national offering reduces with 41,284 bales expected to be offered. Sydney and Melbourne will sell over two days, while Fremantle only requires one day of selling (Tuesday)