Auction sales resumed after the Easter Recess. A slightly larger sale this week with 43,000 bales on offer and the Australian dollar 2.4% and 1.5% easier against the USD and EURO respectively since the last auction on 17th April. Prices opened stronger but not to the full extent of the currency adjustment. There was little change on Thursday and buying activity was as stable as we’ve seen in recent weeks. Perhaps confidence has been helped by consideration of quantities to come between now and August.
AWEX Eastern Indicator compared with 17/04/2019
Change in % +0.87%
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Schneider Indicators compared with 17/04/2019
↓ 15 Micron
Change in %: -0.26
↓ 16 Micron
Change in %: -0.73%
Change in %: +0.21
↑ 18 Micron
Change in %: +1.85
Change in %: +0.50
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.
Despite the well documented reduced production, AWTA test data indicates an increase by 78.8% of wool tested 16.5 micron and finer to the end of April compared to the same period last season. 17.0 micron, an increase of 23.0%. Despite this quite dramatic volume increase and reports of a drop in consumption of fine wool, the AWEX Micron Price Guide for 17.0 (MPG) published this week still has it in the 73rd percentile for the last 5 years. Meaning prices have been lower than this level 72% of the time over the past 5 years. This is quite a strong point for the potential of 17.0 micron and finer to improve when the better quality selection becomes available from August. Supply is expected to decrease (drought and poor lambing last year) and a possible shift to a better growing season this year (time will tell) could easily result in a reduction in volume of tested fine wool. There is currently only about a 7% difference in average price between 17.0 micron and 21.0 micron to add further thought to this prospect. Crossbred wool (25.0/30.0 micron) remain at historically high levels. Crossbred producers should take care of their valuable product and employ a classer to prepare their clip to the Code of Practice to obtain full advantage of this current trend.
Auction offering – current week
Selling Centres for week 44
Market Sale Offered Sold Passed In
North S 44 10443 10120 3.1%
South M 44 21790 20592 5.5%
West F 44 10820 9578 11.5%
Auction offering – next week
Market Sale Sale days Volume
North S 45 W-T 8159
South M 45 W-T 19248
West F 45 W-T 6057
If you want to see the complete Wool Sales Roster click here.