AWIS WOOL MARKET REVIEW

Week Ending 22 May 2020 (Week 47)

The AWEX EMI finished at 1155¢, 24¢ lower (-2.0%) in Australian currency and 6¢ lower (-0.8%) in US currency at sales in Sydney, Melbourne and Fremantle in Week 47.

21,101 bales were on offer nationally, compared with 23,371 bales last sale.  12.5% of the offering was passed in after 8.6% of the potential offering was withdrawn prior to sale.  18,455 bales were sold.

AWEX reports that the value of the wool sold was $23.8 million ($1,290 per bale), taking the season total to $1,831 billion ($1,641 per bale).  The number of bales sold at auction this season is now 19.0% less than in 2018/19.

The market got away to a steady start when the Southern Indicator was up by 1¢ on Tuesday, but eased later in the day in the West.  The easing was continued on Wednesday, when the Southern Indicator was down by 17¢.  The Northern Indicator was down by 37¢, but this was by comparison with Tuesday of the previous week when the market had moved up.

Almost all the market movement was among the Merinos, with the Crossbreds unchanged.

Calculation of changes in the average weekly MPGs continues to be difficult with price movements as variable as was seen this week; and when the South sells on both days; and the North and the West each sell on one day.

The US Exchange Rate finished 0.78¢ (1.2%) higher to close at 65.51¢ on Wednesday.

Buyers for China continue their dominance.

In other countries, the South African Cape Wools Indicator was down by 3.1% since the last sale two weeks ago against a 1.8% appreciation of the Rand against the US Dollar.  Sales resumed in New Zealand this week for the first time since mid-March.  7,000 Crossbred bales were offered in a softer market in the North Island.

Looking ahead, offerings for the coming three sales are expected to range from 18,729 bales to 23,643 bales and to be 19.7% less than in the same period last year.  The forecast progressive difference to Week 50 is -12.1%.