Week 07 - August 2020
Eastern Market Indicator (EMI)
Eastern Market Indicator (EMI)
Microns
AWEX Auction Micron Price Guides
Sales held Tue 11th Aug & Wed 12th Aug 2020
Offering (Aust. Only)
Offering (Aust. Only)
Sales Week 7: 13th August 2020
Currency Movements
Currency Movements
Sales Week 7: 13th August 2020
Forecast
Forecast
Scheduled Australian Wool Auction Sales
AWI Commentary
A better wool market greeted grower sellers this week, with a more appropriate volume of wool put up for sale relative to current demand. As a result, this week, 92% clearance rates were achieved. The past few months have seen a 30,000 bale or less national auction offering appearing to meet demand.
The EMI (eastern Australian market indicator) presented a market in retraction by dropping 2ac to 1004ac clean kg but in reality over 80% of the wool on offer increased in value. The indicator was heavily influenced by major falls in the cardings and oddments sectors as carbonized types are struggling to find a suitable level of trade post first stage manufacture.
The auction competition switched to traders dominating the Merino segment this week. Prices on offer attracted their stronger buying interest. Merino fleece wools sold 10 to 20ac above the levels of last week and comeback and crossbred wools were generally 5ac dearer.
Off shore top makers appeared to be slightly caught off guard on the first day as the current price levels were matched and pushed slightly upward by local exporters. This was rectified on the second day with the major Chinese buyers lifting their purchasing rates which helped consolidate and improve price levels across all Merino fleece types and descriptions.
Chinese top making interest may have moved some quantity to the merino skirting area of the offering with more of their activity witnessed on those types. European interest continued ascendancy at the top of the crossbred sector once again. Over one third of the offering went into their inventory.
Prices of Crossbreds and Merino skirtings are at the lowest levels they have been for at least 5 years so buying these wools may prove astute in the long term or even if mills just need to be run, a cheaper input is also a safer bet as machinery fodder.
