A stronger AUD against the other major currencies, particularly the USD, along with a small offering were the most significant factors influencing the wool market this week. The AUD was 4.5% stronger over the week against the USD. According to analysts this was largely due to strong iron ore export prices coinciding with a softer USD. Competition, predominantly from Chinese interests, was more active across all types in a very small national offering with Fremantle not selling this week. The focus in recent weeks has been on the superfine end but this shifted to the more traditional Chinese types of 19.0 and 21.0 micron this week.
AWEX Eastern Indicator compared with 29/05/2020
Change in % +1.11
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
Change in %: +1.32
Change in %: +0.79
Change in %: +1.30
Change in %: -0.37
Change in %: +2.21
Change in %: +0.77
Prices have certainly eased over the past couple of months however the pleasing factor is that there’s still price premiums for micron. Historically when the market has entered a sustained low period, the price spread across the range of microns has tended to be minimal with little premium for micron. The price curve for micron tends to flatten out. Using AWEX MPG’s as a guide, the 17.0-micron price guide is at an 18% premium over the 19.0-micron value. And the 19.0 value is almost 7% over the 21.0 price guide. This is while demand from Europe remains subdued at best. A healthy scenario and encouraging for the production of quality superfine wool.
Monday is a public holiday in Australia so sales will be held on Wednesday and Thursday next week.
Auction offering – current week
Market Sale Offered Sold Passed In
North S 49 6463 6050 6.4%
South M 49 8912 8287 7.0%
West F 49 no sale
Auction offering – next week
Market Sale Sale days Volume
North S 50 Th 5579
South M 50 W/Th 13726
West F 50 W 4835
If you want to see the complete Wool Sales Roster click here.