AUSTRALIAN WEEKLY MARKET REPORT

Comment

What a clear difference the one week can make. Buyer confidence returned and it didn’t take much to push the AWEX EMI nearly 3% dearer. Less than 30,000 bales were offered. Passed in rates were much lower as growers are more comfortable selling into a strong market. There was positive news regarding the sale of tops and greasy wool coming out of China late last week and the expectations of a dearer market came to fruition. It’s clear what difference just a little improvement in confidence can have when considering the volume and type of wool on offer. The Chinese focus was on 19.5 and broader plus the most inferior types. The overall price gap between best, worst, finest and broadest, is now at the smallest range for the season to date. As is often the case when the market is changing, the cardings move first, locks were as much as 8% dearer.

AWEX Eastern Indicator compared with 24/05/2019

Eastern Indicator

Close: 1887

Change in % +2.95%

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

Schneider Indicators compared with 24/05/2019

↓15 Micron

Close: 2,534

Change in %: -0.2%

↑16 Micron

Close: 2,349

Change in %: +0.51%

↑17 Micron

Close:  2,269

Change in %: +1.63%

↑18 Micron

Close: 2,174

Change in %: +0.51%

↑19 Micron

Close: 2,132

Change in %: +0.94%

 

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

Growers are more likely to sell now. Historically an improvement in market confidence like this week would flush out volume for sale, but still just 23,000 bales are currently rostered for each of the next two weeks and less than 20,000 bales in week 51. No doubt, the first sale in July will be a larger one, the first of the new financial year, but we also have the three-week recess to consider in July. Anyone who needs wool either for prompt demand or to feed machinery will have little option but to buy. To wait would seem a risky proposition with the market volatility seen in recent times.

Auction offering – current week

Selling Centres for week 48

Market          Sale          Offered             Sold       Passed In

North                    S 48                      7864                          7459                  5.2%

South                   M 48                     16418                        14972                  8.8%

West                     F 48                      3991                           3470                  13.1%

 

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 49                        W-T                          10391

South                     M 49                       W-T                           13228

West                       F 49                      no sale

 

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