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Australian Weekly Market Report

Published March 28, 2019 by Tim Marwedel

Comment

The market seems to be in a ‘hold and wait’ pattern. Many customers, not all, are convinced prices must fall during this period. The national buyers list is more evenly spread as buyers look for value to limit risk of any further correction. Crossbreds for example, the cheapest wool available, were dearer this week. But, like the whole supply chain, business must go on. The growers are more reluctant to sell in an easing trend and almost 12% of the original 37,000 bales were passed in. The end result was a small correction of just -0.8% in the AWEX EMI for the week. This is a better result than many would have anticipated.

AWEX Eastern Indicator compared with 22/03/2019

Eastern Indicator

Close: 1947

Change in % -0.81%

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Schneider Indicators compared with 22/03/2019

15 Micron (*)

Close: 2,885

Change in %: +0.14

16 Micron

Close: 2,477

Change in %: -2.50

17 Micron

Close:  2,382

Change in %: -1.34

18 Micron

Close: 2,291

Change in %: -0.92

19 Micron

Close: 2,201

Change in %: -1.14

Each indicator is expressed by a number representing a market quotation for a selected range of types and is not a price expression and it’s not influenced by currency fluctuations.

Wool indicators are anyway based on Australian Dollar.

If you want to learn more about SCHNEIDER indicators Click here.

Forecast

There is no doubt the generally poor offering in terms of quality and quantity is influencing an overall negative sentiment on the market. But at the same time demand remains slow. We are in a way fortunate that as few as 33,000 bales were eventually sold this week. If volumes were greater, then the impact on the market could potentially have been more. But it is what it is, supply and demand will always determine price and we never really rely on this period to buy wool for our better Italian spinner and weaver clients. The wool on offer through this period in general is often not so suited for their particular requirements.

Auction offering – current week

Selling Centres for week 39

Market          Sale          Offered             Sold          Passed In

North                    S 39                  8717                       7884                   9.6%

South                   M 39                 20153                    17924                  11.1%

West                     F 39                  8535                       7171                   16.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                   S 40                 W-T                            9524

South                   M 40                W-T                           21462

West                     F 40                 W-T                            7226

If you want to see the complete Wool Sales Roster click here.