Week 51 - June 2024
Eastern Market Indicator (EMI)
Eastern Market Indicator (EMI)
Microns
AWEX Auction Micron Price Guides
Sales held Tue 18th Jun & Wed 19th Jun 2024
Offering (Aust. Only)
Offering (Aust. Only)
Sales Week 51: 20th June 2024
Currency Movements
Currency Movements
Sales Week 51: 20th June 2024
Forecast
Forecast
Scheduled Australian Wool Auction Sales
AWI Commentary
Somewhat unexpected tougher market conditions at this week’s Australian wool auctions. Buyers, both here locally in sale rooms here and overseas, generally downshifted to safety mode awaiting better demand signals indicating acceptance - or otherwise- of the recent price rises gained over the previous weeks.
Despite the exceptionally small volumes available, due mostly to Western Australia not holding an auction sale, prices still lowered by around 0.8% within the Merino sector. Skirting types largely held onto their values whilst cardings dropped a few cents. The crossbred sector gained 10ac.
Perhaps manufacturers and traders who were wanting to buy decided not to spook the market. Trying to execute contracts in a very limited supply situation would have pushed price levels higher, taking sales on the books into loss and limiting future selling opportunities. The first sales of the new Australian financial year usually sees large volumes hitting the market and holding off to purchase into larger supply sale weeks was maybe the strategy.
The stronger AUD against the major trading currencies accounted for more than half of the price depreciation this week. It has been widely reported that the Reserve Bank of Australia (RBA) will probably be one of the last G10 central banks to cut interest rates, placing further upward pressure on the AUD against the majors.
All selling centres in operation next week with 40,000 bales to be offered.
