AUSTRALIAN WEEKLY MARKET REPORT

Comment

Global demand slows resulting in lower prices overall this week. The quality of the offering is having an impact as buyers and traders look for value across a wide range of types. Best style/strength again the focus of many as the offering of these types disappears into the autumn months. Higher VM and lower yields are suffering due to the impact of the season. Whilst shearing delays have improved ever so slightly, overlength and higher mid break coupled with tenderness, has created a gap in the market for traders to take advantage. Dumping and packing delays create a headache for exporter cash flows also affecting the strength of the market.

AWEX Eastern Indicator compared with 31/03/2022

Eastern Indicator

Close: 1300

Change in % -1.40

Authentico Index Values

15 Micron

Close: 3626

Change in %: -4.0

16 Micron

Close: 2832

Change in %: -1.7

17 Micron

Close: 2455

Change in %: -1.8

18 Micron

Close: 2108

Change in %: -2.1

19 Micron

Close: 1809

Change in %:  -2.0

Authentico Indicator

Close: 2469

Change in %: -2.2

Forecast

A massive week 42 volume of 62,000 bales after the recess will surely test the market resilience. Having said this business with China has been consistent supported by new activity from India, whilst Japan and many parts of Europe remain subdued. General feeling is the market will struggle short term, however longer term view looks more promising. Triggers to look out for are the EMI below 1300 and the USD(EMI) below 875 usually create some positive activity.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 40	12697	11133	12.3%
South	M 40	23066	20329	11.9%
West	F 40	10487	8469	19.2%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 41	RECESS
South	M 41	RECESS
West	F 41	RECESS

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