AUSTRALIAN WEEKLY MARKET REPORT

Comment

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

Eastern Indicator

Close: 1384

Change in % -1.7

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Authentico Index Values

15 Micron

Close: 4039

Change in %: +2.0

16 Micron

Close: 3245

Change in %: -1.45

17 Micron

Close: 2802

Change in %: -0.71

18 Micron

Close: 2321

Change in %: +1.58

19 Micron

Close: 1803

Change in %:  -2.11

Authentico Indicator

Close: 2770

Change in %: -0.03

Forecast

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

Market	Sale	Offered	Sold	Passed In
North	S 38	11439	9531	16.7%
South	M 38	24990	20996	16.0%
West	F 38	8720	6974	20.0%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 39	T/W	11697
South	M 39	T/W/T	25805
West	F 39	T/W	10621

If you want to see the complete Wool Sales Roster click here.