Despite the sharp increase in the value of the Australian dollar, the wool market has held its nerve once again. According to AWEX reports, this week’s turnover was $56.09 M at national auction sales. The market settled on Tuesday but the movement was in line with the change in currency values, AUD v USD. With this fall in local values, growers showed once again their resistance to sell wool in a falling market. This helped prices to rally and remain fairly flat over the last two days of sale. The key point to note is that the benchmark AWEX EMI closed 0.7% higher in USD terms, indicating consistent enquiry from our main customer, China. 17% of the national offering was passed in as it failed to reach the grower reserve. Of most demand again were fleece lines with low VM content (1.0% or less) and with good specification. As the selection deteriorates, this is becoming more pronounced.
AWEX Eastern Indicator compared with 04/03/2022
Change in % -1.7
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Authentico Index Values
Change in %: +2.0
Change in %: -1.45
Change in %: -0.71
Change in %: +1.58
Change in %: -2.11
Change in %: -0.03
Most would be a little surprised by the performance of the market but those competing strongly at auction seem less concerned. Obviously, demand is consistent enough for the large trading companies to continue at these levels with prices relatively flat in US values. The demand for the fleece lines with heavier fault was a little irregular, however buyers continued to consume them despite the volume of these types on offer. We often expect the supply to drop from March but the larger brokers advise that April and May are two of their biggest months for wool receivals. Another 48,000 bales are listed for sale next week.
Auction offering – current week
Auction offering – next week
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