In this section we will describe how the buyer went in filling his clients requirements for wool.
But first we will discuss the sample lot in relation to other simialr lots within the sale.
There were only 5 lots on the day that were close to the micron and type requirments. Summarising the other 4 lots as follows:
- One lot was finer at 18.9 but was outside the VM constraints.
- One lot was 19.2, been offered more than once, and was passed in again. With the subjective characteristcs it was unsuitable.
- Another lot was from Adelaide, resulting in costs outisde the range.
- The last lot was on the extreme of the Vm range at 1.0%, and sold for 11 greasy c/kg more than the buyer was going to pay.
While the last lot was a possiblility, it had been sold earlier in the day, and was passed over.
So as soon as that last lot at 1.0% was passed over, not only was the selection reduced, but the offering was coarser. Therefore the buyer would have had more difficulty in achieving both the technical specifications and price specifications for the client.
So the buyer is continually updating his current purchase averages, updating the upcoming selection - both technical and price, and attempting to keep at bay his competitors.
The buyer made the decision to take the risk and hold off until the next day, and the offering was going to be more suitable for this contract.