Week 08 - August 2020
Eastern Market Indicator (EMI)
Eastern Market Indicator (EMI)
Microns
AWEX Auction Micron Price Guides
Sales held Tue 18th Aug & Wed 19th Aug 2020
Offering (Aust. Only)
Offering (Aust. Only)
Sales Week 8: 20th August 2020
Currency Movements
Currency Movements
Sales Week 8: 20th August 2020
Forecast
Forecast
Scheduled Australian Wool Auction Sales
AWI Commentary
Wool prices were unable to maintain the more stable pattern set at last weeks auctions and depreciation across all types and descriptions occurred this week. As a result, clearance rates were way down compared to last week with just 74% of the offered quantity meeting the grower reserves.
The EMI (eastern market indicator) dropped 5.9% to 945ac cln/kg but the stronger AUD (+1.8%) had the US prices faring better in comparison, but still 4.1% was eliminated from that indicator to close at 685usc cln/kg. Wool prices expressed using the EMI as a guide have fallen to the levels of September 2012 in AUD and in USD ,levels of August 2009.
Chinese top makers dominated the Merino sector this week. The major European top maker dominated the crossbred segment. As prices retreated, more and more wool often sold under just limited top maker competition, particularly the dwindling supply of lower yielding drought-affected wools. The carding processors were also active as prices lowered and reasonable competition ensued with merchants of these types.
Local and foreign traders generally fled to safety with just sold orders needing completion or the easier traded types coming under their buying scrutiny. Some operators chose to sit out again and not compete due to their lack of holding firm orders and more-so that speculation is not part of the psyche of the modern day trader currently.
Compared to last season at the same time, almost 7% more wool has been sold to the trade even though prices are 37% lower. The next three weeks has 31% more wool forecast to sell than the same period last year.
Next week just Melbourne and Sydney are selling as WA sits out as this was the “wool week” scheduled event which is now COVID cancelled.
