Week 18 - November 2022
Eastern Market Indicator (EMI)
Eastern Market Indicator (EMI)
Microns
AWEX Auction Micron Price Guides
Sales held Wed 2nd Nov & Thu 3rd Nov 2022
Offering (Aust. Only)
Offering (Aust. Only)
Sales Week 18: 4th November 2022
Currency Movements
Currency Movements
Sales Week 18: 4th November 2022
Forecast
Forecast
Scheduled Australian Wool Auction Sales
AWI Commentary
This week’s Australian wool auction sales could not hold back the negative sentiment enveloping the global industry presently. Local markets are slowly deteriorating the good price gains that were made through October with another three per cent of raw wool value on average being lost this past week. All wool types and descriptions were affected, but it was primarily the Merino long wools sector that bore the brunt. As prices lowered though, seller resistance became apparent. Almost 20% of this week’s offering failed to meet the sellers reserve prices.
The primary factor of the tough demand being experienced presently is the continuation of the lockdown regime of our largest customers in China. Domestic retail sales in China are dropping as people are reticent to leave home to shop. On top of that, the lack of availability of significant first stage processing anywhere else globally is stymying opportunistic buying to fill gaps or take advantage of the current prices - which are considered “cheap” by many trade commentators.
Meanwhile large parts of south eastern Australia are facing severe climatic conditions with widespread flooding. Not much shearing is taking place in these regions nor are trucks able to access properties that have baled wool on farm ready for testing and selling. These major disruptions will affect the flow of wool onto the market pre and post the Christmas recess, with unpredictable supply becoming a concern to exporters and overseas manufacturers. There remains just six weeks of selling prior to the three-week recess for Christmas. 36,000 bales are scheduled next week to sell Tues/Wed.
