AWIS WOOL MARKET REVIEW

Week Ending 3 July 2020 (Week 01)

The AWEX EMI steadied in another larger sale, when it finished 6˘ higher (+0.5%) in Australian currency and 2˘ higher (+0.3%) in US currency at sales in Sydney, Melbourne and Fremantle in Week 01.

30,821 bales were on offer nationally, compared with 28,029 bales last sale.  5.1% of the offering was passed in after 4.8% of the potential offering was withdrawn prior to sale, leaving 29,264 bales as sold. The Withdrawn Rate was the lowest since mid-January and the Passed-In Rate was the lowest since 2018/19

AWEX reports that the value of the wool sold was $37.0 million ($1,264 per bale).  The number of bales sold at auction this week was slightly greater (+0.9%) than in Week 01 in 2019/20.

The market steadied as it moves towards the mid-season break.  The EMI and the WMI both moved up slightly on Wednesday and Thursday.  Most average AWEX Micron Price Guides moved up for both Merino and Crossbred types, with the greatest rises from 17.5 to 19.0 microns.

The US Exchange Rate was steady when it finished 0.19˘ (-0.3%) lower to close at 69.24˘ on Thursday.  It has been over 69˘ in five of the last six weeks.

Buyers for China continued their dominance in the absence of significant support from other countries.  ABS export data for May was released during the week.  It showed that 92% of Australia’s wool exports went to China in May, on top of the 93% in April

In other countries, the South African Cape Wools Indicator was up by 1.3% since last week against a 0.5% appreciation of the Rand against the US Dollar and a 1.1% appreciation against the Euro.

Looking ahead, next week’s sale is the last before the mid-year three week break.  It is currently forecast to be 36,712 bales, 7.7% more than in Week 02 last year.