When we have exceptionally small national quantities, the market is often neglected and this was the case this week. Not only were the volumes small (19,000 bales offered), the selection was again very poor. A large percentage of very low yielding, drought affected types. These wools are not only inferior in quality, they are more expensive to transport with less clean weight per bale and processing tariffs on lower yielding types are higher. The range of price between microns is now small with little discount down to 21.5 micron. This should help to limit further downside on the fine types and it was more noticeable on Thursday that the level of interest had improved at this lower basis. This however has unfortunately been the trend in recent weeks. The opening day lower, the second day firm.
AWEX Eastern Indicator compared with 14/06/2019
Change in % -3.13%
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Schneider Indicators compared with 14/06/2019
Change in %: -1.05%
Change in %: -2.13%
Change in %: -0.32%
Change in %: -2.62%
Change in %: +1.34%
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.
The wool prices in USD must now appear much more attractive. The AWEX EMI in USD terms is now at the lowest level since October 2017. We know how limited supply will be in the next season, the lowest in almost 100 years. All we need is for a little more confidence to return to the market. Buyers and traders are also reluctant to sell too far forward with concerns over supply and cash flow must be restricting many participants. Of increasing concern to Australian wool producers must be the appetite of our clients to source a lot more merino wool from other country origins now when compared to a few years ago. There is no doubt that this is a mulesing issue but we are also seeing a push from global brands on environmental standards and accountability.
Auction offering – current week
Selling Centres for week
Market Sale Offered Sold Passed In
North S 51 8098 7123 12.0%
South M 51 10974 9511 13.3%
West F 51 no sale
Auction offering – next week
Market Sale Sale days Volume
North S 52 W-T 8073
South M 52 W-T 15573
West F 52 W-T 7226
If you want to see the complete Wool Sales Roster click here.