Week 22 - December 2022
Eastern Market Indicator (EMI)
Eastern Market Indicator (EMI)
Microns
AWEX Auction Micron Price Guides
Sales held Tue 29th Nov & Wed 30th Nov 2022
Offering (Aust. Only)
Offering (Aust. Only)
Sales Week 22: 2nd December 2022
Currency Movements
Currency Movements
Sales Week 22: 2nd December 2022
Forecast
Forecast
Scheduled Australian Wool Auction Sales
AWI Commentary
Price falls on most types and descriptions were largely the outcome of this week’s Australian wool auctions. The continued lack of demand emanating from China remains the primary woe to market prices, with manufacturers and traders within that country seemingly on a minimal buying regime running up to the Christmas recess.
In concert with that mentality, local traders and exporters have also reverted to risk averse strategies and only wanting to absorb limited stocks of easily disposable types to pre-empt trading opportunities, thus some of the harder to place types are being somewhat neglected and contributing more to the overall weakness. Better types are less affected than the quoted falls.
Despite the above commentary, China does still remain the primary export destination for the majority of our fibre. It’s just that their requirements for the raw material are far les in volume and regularity than usual. This has seen the market lose around 200ac since the commencement of the new season five months ago. During this same period though, renewed and seemingly stronger Indian activity has buffered the impact as has the normal European buying that appears annually in September through to November.
Part of the weaker by percentage AUD prices came about by virtue of a stronger AUD against the USD and CNY. These forex rates contributed to around a third of the value of the overall losses recorded this week. As of today, these rates have forged a further 1.6% higher which came about on news that the pace of interest rate hikes may be lesser than expected and messaging emanating from Chinese State media that is beginning to pivot away from fear of the virus and more toward personal responsibility.
Next week has a larger than expected 45,000 bales on offer Tues to Thurs.
