The International wool prices fell this week in Australiaafter two days of auction with a high volume of offers and a large proportion of lots with quality problems.
The latter had a downward effect, both in local currency –the exchange rate rose– and in dollars. The prices fell 1.6% and 2.5% respectively, partially influenced by the price.
The Eastern Markets Indicator (IME) fell 14 cents in dollars compared to the previous week and closed at US$ 8.20 cents per clean base kilo.
On the second day of auctions, the downward correction deepened and sellers withdrew almost 22% of the lots offered for not validating the proposed prices.
The initial offer was 25% above that presented the previous week and only the bales with the best objective data remained firm.
John Samuelle
Uruguayan wool production.
local references
At the local operations level, the averages published by the Union of Wool Consignees and Auctioneers show references of US$ 8.40 per kilo fleece for certified super fine Merino wool less than 17.9 microns.
Bales from 18 to 18.9 microns with certifications averaged US$7.60 per kilo of dirty base and those from 21 to 19 microns, green grifa, obtained between US$6.10 and US$5.75 per kilo fleece.
For medium-diameter crossover wools with green grifa (23 to 26 microns), the deals concluded range between US$3 and US$2, and Corriedales of 28 microns and more obtain US$1 per dirty base kilo.
On the other hand, the preliminary data of the Annual Sworn Declaration of Inventories indicate that the ovine stock until June 2022 fell 0.9% (about 80 thousand heads less than in 2021), with a significant decrease in capons (14%) and increases in breeding categories of up to 9%. The most numerous category, breeding sheep, fell 2.3%.
The figure of 6.13 million wool is the lowest historical record for the Uruguayan flock.
The amount
15% is the fall in the price of wool between November 2021 and November 2022 according to the Eastern Markets Indicator.
