Week 20 - November 2020
Eastern Market Indicator (EMI)
Eastern Market Indicator (EMI)
Microns
AWEX Auction Micron Price Guides
Sales held Tue 10th Nov & Wed 11th Nov 2020
Offering (Aust. Only)
Offering (Aust. Only)
Sales Week 20: 12th November 2020
Currency Movements
Currency Movements
Sales Week 20: 12th November 2020
Forecast
Forecast
Scheduled Australian Wool Auction Sales
AWI Commentary
A cursory glance at the EMI would suggest a rather mundane selling week at the Australian wool auctions but in reality it was one of the most explosive weeks of opposing market movements seen for quite some time. The dramatic change in sentiment that occurred mid-week was substantial.
The Eastern Market Indicator (EMI) added just 1ac or 0.1% to close at 1189ac clean/kg. In contrast, the USD EMI was 2% or 18usc higher due entirely to the variation in the AUD v USD foreign exchange (forex) rate.
Buyers mostly commenced the week with negative strategies that had the market in reverse from the opening lot. Towards the latter part of the day though, this fall stopped abruptly as bids started flowing into the sale rooms from China. The market then showed signs of firming up which was confirmed as Fremantle commenced selling and became dearer than the already-closed Eastern markets.
The second and final day of selling had prices steaming up once again in a very hot atmosphere at auction. To highlight the market’s erratic nature, at different points of the week, price oscillations of over 100ac for similar types dependent on the timing of sale were registered.
The wool industry is no stranger to big price movements, but the recent adjustments are far more radical, both in magnitude and velocity. This is indicative of the current operational methodology of minimal to zero risk appetite of stock or forward exposure by both buyer and seller.
Fremantle provided the clearest of market quotes and signals and Merino fleece and skirtings became 30 to 40ac dearer for the week. Crossbreds were 15ac lower and cardings were inconsistent across selling centres but were generally unchanged to minus 30ac.
40,000 bales are rostered for next week across all three selling centres.
