AUSTRALIAN WEEKLY MARKET REPORT

Comment

Sale prices were lower this week with the exception of the ultrafine merino wools. Sub 15.0 micron and best quality 16.0 micron are still attracting strong support in small supply.

In USD terms, the AWEX EMI at 726 c, is now the lowest since September 2020. Prior to that “covid year”, we need to go back to 2010 when the EMI touched a similar level. In the month of May 2010, the EMI in US currency was as low as 724 before immediately reacting upwards. Finishing it’s upward run in June 2011 at around 1500 (US) and nearly doubling in value over that period. In May 2010, the Australian dollar was trading around 0.90 against the USD and around 1.06 against the USD by June 2011. At the moment, the issue is simply a lack of demand. No doubt, at some point in history we’ll realize that at this price level it will be a good time to buy wool and to be cautious when selling. The outlying situation is, however, not so clear. Demand in the medium term is being hindered by the poor global economic situation with a particular impact on consumer spending and, as a result, prompt demand for wool is affected. This is essentially creating the caution in the market. If looking at price alone, then we must assume that there are some opportunities for those who are able to take advantage at these price levels. Having finance and a vision far enough out to take advantage of this, is completely another story.

AWEX Eastern Indicator compared with 18/08/23

Eastern Indicator

Close: 1127

Change in % -3.1

Authentico Index Values

15 Micron

Close: 3450

Change in %: -0.4

16 Micron

Close: 2547

Change in %: +2.2

17 Micron

Close: 1984

Change in %: -2.7

18 Micron

Close: 1703

Change in %: -3.5

19 Micron

Close: 1571

Change in %: -0.7

Authentico Indicator

Close: 2118

Change in %: -1.2

Forecast

Sales return to the three centres next week after a recess in Fremantle. The Sydney sale is a designated superfine sale. While not all brokers draw clips from the superfine districts, we will see the first reasonable offering of fine wool from the New England region.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 08	13709	11367	17.1%
South	M 08	22261	19169	13.9%
West	F 08	no sale

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 09	T / W	14315
South	M 09	T / W	23464
West	F 09	T / W	10829

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