In the international context, prices showed little variation during the past week.
He wool market in it Uruguay It is reaching the final stretch of the harvest process and is waiting for greater business completion, which is slow; Meanwhile, international prices showed few variations during the last week.
Worldwide, China Demand dominated and producers were able to sell 94% with the validation of the proposed prices, although without many variations in their values. In that sense, the organism Australian Wool Exchange (Awex) He assured that the few fluctuations in wool prices correspond to a horizontal behavior in values that corresponds to a modification in the commercial modality in response to the economic uncertainty that the sector is going through.
“Customers buy at a fixed price and only acquire the lots that are going to be delivered in the short term, a risk aversion strategy that in wool auctions and in all links of the textile chain,” he says. Awex. This generates greater stability in the business, based on short-term contracts and avoiding the generation of a lot of product stock.
The Uruguayan market waiting for business
This being the last stage of the harvest of the wool, From the sector they are on alert due to the few intentions of closing businesses. This is due to three factors, firstly, a weak dollar locally. On the other hand, to an adjustment in prices and, furthermore, to a cost structure that does not allow productivity to be profitable.
This panorama caused the market to turn to thick wools, leaving aside the most delicate ones of 26 to 29 microns. The reference prices, for their part, are 7 dollars per kilo dirty base for fine Merino wool of 17 microns and 5 dollars for lots in the 19 micron axis and about 4.50 dollars for 20.5 microns.
The concern of the sector
At the beginning of this month, the president of the Uruguayan Wool Secretariat (SUL), Alfredo Fros, He warned that there was a product that had not been sold for more than five years. “There is product from the last four or five years and it is tremendous for anyone,” she warned and added that, until that moment, they had 47 million kilos unsold.
The type of wool that is suffering from few sales is Corriedale wool of 26 microns and above, of which there is a lot of supply globally and the demand is very little, according to the specialized media Blasina y Asociados.
Source: Ambito
