IMPORTANT NOTICE:

 

 

AWIS WOOL MARKET REVIEW

Week Ending 27 March 2020 (Week 38)

The AWEX EMI finished 4˘ higher (+0.3%) in Australian currency and 54˘ higher (+6.7%) in US currency at sales in Sydney, Melbourne and Fremantle in Week 39.  The big differences between the changes in the two currencies was due to the 3.60˘ (+6.5%) lift in the US Exchange Rate from 55.71˘ in the previous week to close at 59.31˘.

42,934 bales were on offer nationally, compared with 41,986 bales last sale.  Sellers continued to display a reluctance to sell at the current market levels - 14.3% of the offering was passed in after 11.0% of the potential offering was withdrawn prior to sale.

AWEX reports that the value of the wool sold was $55.3 million ($1,503 per bale), taking the season total to $1.619 billion ($1,700 per bale).  The number of bales sold at auction this season is now 17.7% less than in 2018/19.

Day-to-Day and Sale-to-Sale Changes in AWEX Regional Indicators (Week 39)

Centre

Last Sale

Day-to-Day Changes (Week 39)

Sale-to-Sale

Closing

Sale-to-Sale Changes

 

Week

Indicator

Tuesday

Wednesday

Thursday

Change

Indicator

US ˘

Euro ˘

Eastern

38

1438

-5

+7

+2

+4 (+0.3%)

1442

+54

+49

Northern

38

1469

No Sale

+9

+4

+13 (+0.9%)

1482

+61

+55

Southern

38

1418

-7

+5

0

-2 (-0.1%)

1416

+50

+45

Western

38

1538

No Sale

-27

+1

-26 (-1.7%)

1512

+40

+36

It was a better week in the market this week, but not enough to make up for the falls of the previous week.  The AWEX MPGs from 16.5 to 18.0 micron all moved up, while those from 19.5 to 22.0 microns moved down by similar percentages.  Crossbred MPGs also moved down, as did the AWEX Merino Cardings Index.

As mentioned above, the US Exchange Rate finished 3.60˘ (6.5%) higher to close at 59.31˘ on Thursday.

Buyers for China were even more dominant than usual, with the Indian and Italian industries under pressure due to COVID-19.

Looking ahead, offerings are currently expected to be 45,810 bales and 40,432 bales respectively in Weeks 40 and 41.  Week 42 (the week after Easter) is normally a non-sale week.  However, its status as a non-sale week, or whether it should be a sale week will be determined at a meeting of the National Auction Selling Committee (NASC) on Tuesday evening.

In other countries, sales have been shut down for at least three weeks in South Africa and for at least four weeks in New Zealand because of COVID-19.

Differences in AWEX MPGs

18.5 and 22.0

18.0 and 22.0

17.5 and 22.0

17.0 and 22.0

16.5 and 22.0

North

No 22.0µ MPG

No 22.0µ MPG

No 22.0µ MPG

No 22.0µ MPG

No 22.0µ MPG

South

65˘

143˘

183˘

248˘

343˘

 

Market Indicator

Changes From

 

Four Sales Ago
Week 34

Start of
the Season

Week 39
Last Year

Season Average to
Week 39 Last Year

Eastern Market Indicator

-139  (-8.8%)

-297  (-17.1%)

-505  (-25.9%)

-415  (-21.2%)

Western Market Indicator

-198  (-11.6%)

-369  (-19.6%)

-587  (-28.0%)

-465  (-22.0%)

 

Sale-to-Sale Changes in Average AWEX Merino Micron Price Guides (MPGs)

Micron

16.5

17.0

17.5

18.0

18.5

19.0

19.5

20.0

21.0

22.0

23.0

24.0

Since Last Sale

 

 

 

 

 

 

 

 

 

 

Change ˘

+12

+28

+24

+23

+21

+2

-18

-13

-24

-23

 

 

Change %

+0.6%

+1.5%

+1.3%

+1.3%

+1.3%

+0.1%

-1.1%

-0.8%

-1.5%

-1.4%

 

 

Since Start of the Season

 

 

 

 

 

 

 

 

 

 

Change ˘

-195

-268

-321

-358

-361

-371

-392

-397

-410

-414

 

 

Change %

-9.0%

-12.5%

-15.1%

-16.9%

-17.6%

-18.2%

-19.3%

-19.6%

-20.3%

-20.4%

 

 

Since Same Week Last Year

 

 

 

 

 

 

 

 

 

 

Change ˘

-547

-604

-640

-639

-640

-638

-653

-651

-658

-633

 

 

Change %

-21.7%

-24.4%

-26.2%

-26.6%

-27.5%

-27.7%

-28.5%

-28.5%

-29.0%

-28.1%

 

 

 

Sale-to-Sale Changes in Other Average AWEX Price Guides

Micron

25.0

26.0

28.0

30.0

32.0

MC

Since Last Sale

 

 

 

 

Change ˘

 

-14

-1

+14

-12

-10

Change %

 

-1.3%

-0.1%

+2.1%

-2.9%

-1.0%

Since Start of the Season

 

 

 

 

Change ˘

 

-263

-175

-163

-180

+7

Change %

 

-19.6%

-16.7%

-19.2%

-30.6%

+0.7%

Since Same Week Last Year

 

 

 

 

Change ˘

 

-348

-311

-256

-224

-119

Change %

 

-24.4%

-26.3%

-27.2%

-35.4%

-10.7%

MC   Average Merino Cardings Price Guide

The following tables show the details of this week's sale offering; the expected offerings over the next three sales; the changes in Exchange Rates since the previous sale; and highlights from the January ABS export data.

Details of this Week’s Offering and the Comparison with the Previous Sale’s Offering

 

Progressive Changes from Last Year

Centre

Last Sale

This Sale

 

All Bales

1st Time Bales

 

Offering

Offering

Passed-In

Withdrawn
Before Sale

Re-Offered

Bales Sold

 

Bales

%

%

North

8,792

8,350

10.9%

6.7%

11.0%

7,439

 

-38,200

-11.1%

-15.1%

South

25,128

26,495

13.7%

7.4%

12.3%

22,866

 

-85,041

-12.5%

-16.0%

West

8,066

8,089

19.8%

24.1%

17.9%

6,485

 

-10,540

-4.1%

-10.1%

Australia

41,986

42,934

14.3%

11.0%

13.1%

36,790

 

-133,781

-10.4%

-14.6%

 

Next Sale Offerings and Year-on-Year Differences

Centre

Week 40

Week 41

Week 42

Differences

North

10,055

8,395

No Sale

-29.0%

South

27,370

23,507

No Sale

-17.4%

West

8,385

8,530

No Sale

-39.9%

New Zealand

 

 

 

 

Australia

45,810

40,432

 

86,242

Differences

+22.3%

+7.7%

 

-25.5%

 

Exchange Rates

Last

Day-to-Day Changes

Sale-to-Sale

Closing

Season Min & Max

(Reserve Bank)

Sale

Fri

Mon

Tues

Wed

Thur

Change

Value

Min

Max

United States

55.71

+2.82

-0.91

+1.50

+0.95

-0.76

+3.60  (+6.5%)

59.31

55.71

70.36

Euro

51.12

+3.25

-0.71

+1.14

+0.76

-1.19

+3.25  (+6.4%)

54.37

51.12

62.48

 

Country

% Share of Australia’s Wool Exports by Weight of Wool Shipped

Year-on-Year % Change

 

January
2020

July to January
2019/20

July to January
2018/21

July to January

By Weight

By Value

China

79.3%

77.1%

74.9%

-11.4%

-30.5%

India

5.9%

6.1%

6.4%

-17.7%

-33.8%

Italy

3.2%

5.5%

6.1%

-22.3%

-39.1%

Czech Republic

3.6%

3.2%

3.9%

-30.1%

-49.2%

Korea

2.2%

2.1%

2.7%

-32.4%

-44.4%

Egypt

0.6%

1.2%

0.9%

+13.2%

-11.4%

Thailand

0.4%

0.9%

1.0%

-26.1%

-48.6%

Bulgaria

0.9%

0.7%

0.4%

+30.4%

+35.2%

Change all Countries

 

 

 

-13.9%

-32.6%

 

 


 

Next Three Sales

Week Number           Commencing                             Selling Centres                                Bales

40                    30 March 2020                 Sydney, Melbourne and Fremantle                  45,810

41                      6 April 2020                   Sydney, Melbourne and Fremantle                  40,432

42                     13 April 2020                                    In Recess                                            

© AWIS 2020 (for permission to reprint, in part or whole, please contact this office)

 

 

AWIS WOOL MARKET

REVIEW ARCHIVES

(Week Ending)

 

3 April 2020

27 March 2020

20 March 2020

13 March 2020

6 March 2020

21 February 2020

14 February 2020

7 February 2020

31 January 2020

24 January 2020

17 January 2020

13 December 2019

6 December 2019

29 November 2019

22 November 2019

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1 November 2019

25 October 2019

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27 September 2019

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30 August 2019

23 August 2019

16 August 2019

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12 July 2019

5 July 2019

28 June 2019

21 June 2019

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31 May 2019

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10 May 2019

3 May 2019

19 April 2019

12 April 2019

5 April 2019

29 March 2019

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15 March 2019

8 March 2019

1 March 2019

22 February 2019

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1 February 2019

25 January 2019

18 January 2019

11 January 2019

14 December 2018

7 December 2018

30 November 2018

23 November 2018

16 November 2018

9 November 2018

2 November 2018

26 October 2018

19 October 2018

12 October 2018

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28 September 2018

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7 September 2018

31 August 2018

24 August 2018

17 August 2018

10 August 2018

13 July 2018

6 July 2018

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