WEEKLY MARKET REPORT

Week Ending 10^th October, 2019

AWEX Northern Micron Indices Comparison

MARKET RECOVERS BUT FOR HOW LONG??

The wool market continued on its volatile and erratic path this sale, but growers benefitted from renewed competition as the AWEX EMI added 32 cents to sit at 1543. As has been the case for some time now, the big swings in price (both ways) have thought to be over-done, rising by too much and falling far quicker and further than most thought. This, again was the case last week as the EMI collapsed by 98 cents and to everybody’s relief clawed back 1/3^rd of those losses this sale, the level the market finished at was enough to extract fresh business from our major customers. Fleece microns <18.5 rose by 25/30 cents while 19s and broader gained 50 to 70 cents. Skirting’s added 20 to 40 cents for all types while XB’s were quoted 20 to 30 cents higher. The only sector to fall was cardings, losses ranging from 20 to 40 cents.

Since wool sales resumed in early August, the EMI has moved a total of 763 cents up and down, an average of 76 cents over those 10 weeks or 49% of the EMI (1543). Even the veteran’s of the trade think these large price fluctuations are unprecedented and make trading a very difficult proposition that could continue for some time. Uneasy global economic conditions  that could result in some countries slipping into recession, the ongoing trade tensions and Brexit are still at the forefront of most Western governments which is leading to economic slowdown as consumer confidence weakens and  leads to lower demand from wool processing destinations despite shrinking volumes of wool from Australia. The supply and demand balance is in question as reports of building up of early stage processing stocks in China are countered by the ever eroding supply of wool from NSW & QLD. In the short term demand could swing from good to bad as processors try to work out what price level is fair value through the pipeline and at the retail level.

A few more ram sales to report on; Cassilis Park had a 100% clearance for a top of $3,800 (2) to average $1,530,  Bundilla at Young sold all but 2 of their 239 rams for a top of $10,000 to average $3,270 and Blyth at Adelong sold 77% to achieve a top of $6,500 to average $1,635. We have Canola hay for sale ex Lockhart @ $260/tonne (plus GST) if anyone is interested, contact Ros Press at Macdonald Rural on 0427 704 457.                                                            

                                    Southern Aurora Fwd Prices as at 10th October, 2019

Main Buyers (this week)

AUD/USD Currency Exchange

0.6748 é 0.0030 compared with 10/10/2019