Week 18 - November 2021
Eastern Market Indicator (EMI)
Eastern Market Indicator (EMI)
Microns
AWEX Auction Micron Price Guides
Sales held Wed 3rd Nov & Thu 4th Nov 2021
Offering (Aust. Only)
Offering (Aust. Only)
Sales Week 18: 5th November 2021
Currency Movements
Currency Movements
Sales Week 18: 5th November 2021
Forecast
Forecast
Scheduled Australian Wool Auction Sales
AWI Commentary
The selling week started off positively at this week’s Australian wool auctions, but rapidly disappeared. Buyer confidence was strong to begin with, as some new business had been written pre-sale, but that prompt demand appeared to have been easily met and overseas users were unwilling to meet the new price levels on most Merino qualities.
The Eastern Market Indicator (EMI) closed 0.5% up though at 1340ac/clean kg but in all other currency conversions, the prices went to the favour of the off- shore buyers. The USD EMI dropped 0.5% to a week’s close of 998usc/clean kg, indicating a slightly softer buying intent, as the forex rate of AUD v USD went 1% lower which made the AUD gains. The Fremantle selling centre results were again a highlight of the week’s activity as the Western Market Indicator (WMI) gained a strong 34ac to 1402ac/clean kg.
The broader Merino fleece types were the main target of Merino buyer interest this week. All wools from 19.5 to 23 micron were well sought and pushed 30 to 40ac higher. Sale lots around the 20 micron area came under particularly strong competition. Price differentials to the finer microns had been considered too wide for some weeks by many buyers and they saw these wools as good value. These wools are the types most readily traded, so therefore are of much lower risk in a long term inventory.
Merino types finer than 19 micron were still in demand, but for the first time for a few months, some price sensitivity became apparent as buyers funds were sent to broader wools.
Crossbred wool types were perhaps the brightest section of the market as improvements of 35 to 50ac/clean kg were made to their long struggling levels. On many of the broad wool microns, this represented gains of over 10% to grower returns. Carding gained 15ac.
Next week has 40,700 bales being offered on Tuesday and Wednesday.
