Buyers are not confident to accumulate as downstream demand remains slow. Just 17,000 bales were sold to the trade but to place it into perspective, the weekly turnover was still M$32.7. Not bad considering the general gloomy outlook. We did notice much greater confidence return to the market yesterday. Bidding activity was stronger from a wider range of buyers. For the first time in several weeks, the more inferior types outperformed the better types in terms of market movement yesterday. The tender and lower yielding types were all 1% dearer with some perceived value at these levels entering the mindset of traders and topmakers. The AWEX merino carding indicator (MC) is now at the 19% percentile for 5 years. Meaning that prices have only been lower 18% of the time in 5 years. The market in this sector has certainly been affected but we remain confident that it will improve quickly. Supply of merino cardings will be more affected than most types when considering we will be at the lowest level of supply in 100 years within the next 12 months.
AWEX Eastern Indicator compared with 17/05/2019
Change in % -3.17%
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Schneider Indicators compared with 17/05/2019
Change in %: 0%
Change in %: -2.44%
Change in %: -4.08%
↓ 18 Micron
Change in %: -3.28%
Change in %: -2.32%
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.
We keep focusing on supply, and for good reason. With 31,000 bales next week followed by as little as 20,000 nationally the week after we would expect the market to be performing better. It’s a difficult period, prices are easing and it’s obviously a moment to be cautious but some customers who are planning for the next season will start to make some enquiries at these reduced levels. It would provide some security to have something covered while others are reluctant to even consider it. Growers are still greatly suffering from the drought and have shown a very clear tendency to hold wool rather than to sell it in a falling market.
Auction offering – current week
Selling Centres for week 47
Market Sale Offered Sold Passed In
North S 47 6900 5066 26.6%
South M 47 12833 9992 22.1%
West F 47 4388 2250 48.7%
Auction offering – next week
Market Sale Sale days Volume
North S 48 W-T 8984
South M 48 W-T 17696
West F 48 W 4784
If you want to see the complete Wool Sales Roster click here.