AUSTRALIAN WEEKLY MARKET REPORT

Comment

Buyers are not confident to accumulate as downstream demand remains slow. Just 17,000 bales were sold to the trade but to place it into perspective, the weekly turnover was still M$32.7. Not bad considering the general gloomy outlook. We did notice much greater confidence return to the market yesterday. Bidding activity was stronger from a wider range of buyers. For the first time in several weeks, the more inferior types outperformed the better types in terms of market movement yesterday. The tender and lower yielding types were all 1% dearer with some perceived value at these levels entering the mindset of traders and topmakers. The AWEX merino carding indicator (MC) is now at the 19% percentile for 5 years. Meaning that prices have only been lower 18% of the time in 5 years. The market in this sector has certainly been affected but we remain confident that it will improve quickly. Supply of merino cardings will be more affected than most types when considering we will be at the lowest level of supply in 100 years within the next 12 months.

AWEX Eastern Indicator compared with 17/05/2019

Eastern Indicator

Close: 1833

Change in % -3.17%

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

Schneider Indicators compared with 17/05/2019

15 Micron

Close: 2,539

Change in %: 0%

↓16 Micron

Close: 2,337

Change in %: -2.44%

↓17 Micron

Close:  2,232

Change in %: -4.08%

↓ 18 Micron

Close: 2,163

Change in %: -3.28%

↓19 Micron

Close: 2,112

Change in %: -2.32%

 

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.

Forecast

We keep focusing on supply, and for good reason. With 31,000 bales next week followed by as little as 20,000 nationally the week after we would expect the market to be performing better. It’s a difficult period, prices are easing and it’s obviously a moment to be cautious but some customers who are planning for the next season will start to make some enquiries at these reduced levels. It would provide some security to have something covered while others are reluctant to even consider it. Growers are still greatly suffering from the drought and have shown a very clear tendency to hold wool rather than to sell it in a falling market.

Auction offering – current week

Selling Centres for week 47

Market          Sale          Offered             Sold       Passed In

North                    S 47                      6900                          5066                  26.6%

South                   M 47                     12833                         9992                  22.1%

West                     F 47                      4388                           2250                  48.7%

 

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 48                        W-T                           8984

South                     M 48                       W-T                           17696

West                       F 48                        W                                4784

 

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