WOOL tests numbers increased by 8.4 per cent in Western Australia last month, compared to the previous July, supporting brokers' assertions stockpiles held until prices improve are being cleared from wool stores.
The number of wool tests conducted in July and August are seen as a good indicator of market confidence and likely auction offering volumes to come, because they are usually the quietest two months of the wool selling season for the Australian Wool Testing Authority (AWTA) testing facility in Bibra Lake.
The neighbouring Western Wool Centre (WWC) is closed for its annual three-week recess of live wool auctions at the end of July and into early August, plus it does not trade towards the end of August - week eight of the selling program - because of a lack of wool to offer.
So there is less demand during July and August to test clip samples before clips go up for sale, given that woolgrowers usually prefer to have testing done just before their wool goes to auction, so they can pay for the testing out of their wool cheque.
According to AWTA statistics released Monday, last month it tested 15,060 bales of WA wool - about half the number of tests it conducts during busy months - compared to 13,890 bales tested in July last year.
While a relatively modest increase, it continued the trend so far this year of increased wool tests compared to the same period last year.
AWTA statistics show the number of wool tests declined by 7.9pc in January and by 10.5pc in April year-on-year, but increased by 13.9pc in February, by 14.6pc in March, by 9.5pc in May, by 20.1pc in June and by 8.9pc in July.
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The WA increase in wool tests was slightly behind the national average testing increase of 10.7pc, but the national average was influenced by a 94pc increase in wool tests in Tasmania -but only to 4213 bales tested.
Average wool yield in WA increased slightly to 59.8pc, but average fibre diameter and staple strength eased back slightly to 19.3 microns and 31.2N/Kt respectively last month, compared to July last year according to AWTA.
Average WA wool staple length and vegetable matter contamination last month remained unchanged at 84.2 millimetres and 2.1pc.
Importantly, from the perspective of wool processor confidence in WA wools, the incidence of mid break in staple strength testing decreased by 4.8pc - compared to a national average decrease in mid break of only 1.5pc - last month and is now down to an average of 44.6pc, the lowest of any State.
The volume of Superfine wool - 19.5 micron or less - as a percentage of the overall WA wool clip, last month blew back out to 62.1pc, after averaging 52.5pc for the previous season.
Elders State wool and livestock manager Dean Hubbard and AWN State wool manager Greg Tilbrook recently confirmed wool stockpiles held in store were now being depleted, with stronger demand and better prices, particularly towards the end of last season.
Live wool auctions are set to resume after the annual recess at the WWC next week - week six of the season.
Prices at the main Melbourne wool selling centre - trading on its own for an extra day just before the annual auctions recess began - snapped a six-day losing streak and made good gains, particularly at the finer end of the micron spectrum and for specialty
non-mulesed wools.
Brokers at the WWC are hoping that three weeks later, that demand and firming prices can migrate across to the WWC.
General wool testing fees have increased by 2pc for the 2022-23 wool selling season, AWTA has announced.
Total cost for testing a typical seven-bale lot, including a staple length and strength test, will increase by $1.75 from $75.80 to $77.55, AWTA said.
This is the first general testing fee increase since the 2018-19 season.
