What a clear difference the one week can make. Buyer confidence returned and it didn’t take much to push the AWEX EMI nearly 3% dearer. Less than 30,000 bales were offered. Passed in rates were much lower as growers are more comfortable selling into a strong market. There was positive news regarding the sale of tops and greasy wool coming out of China late last week and the expectations of a dearer market came to fruition. It’s clear what difference just a little improvement in confidence can have when considering the volume and type of wool on offer. The Chinese focus was on 19.5 and broader plus the most inferior types. The overall price gap between best, worst, finest and broadest, is now at the smallest range for the season to date. As is often the case when the market is changing, the cardings move first, locks were as much as 8% dearer.
AWEX Eastern Indicator compared with 24/05/2019
Change in % +2.95%
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Schneider Indicators compared with 24/05/2019
Change in %: -0.2%
Change in %: +0.51%
Change in %: +1.63%
Change in %: +0.51%
Change in %: +0.94%
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.
Growers are more likely to sell now. Historically an improvement in market confidence like this week would flush out volume for sale, but still just 23,000 bales are currently rostered for each of the next two weeks and less than 20,000 bales in week 51. No doubt, the first sale in July will be a larger one, the first of the new financial year, but we also have the three-week recess to consider in July. Anyone who needs wool either for prompt demand or to feed machinery will have little option but to buy. To wait would seem a risky proposition with the market volatility seen in recent times.
Auction offering – current week
Selling Centres for week 48
Market Sale Offered Sold Passed In
North S 48 7864 7459 5.2%
South M 48 16418 14972 8.8%
West F 48 3991 3470 13.1%
Auction offering – next week
Market Sale Sale days Volume
North S 49 W-T 10391
South M 49 W-T 13228
West F 49 no sale
If you want to see the complete Wool Sales Roster click here.