WEEKLY MARKET REPORT

Week Ending 21st February, 2020

AWEX Northern Micron Indices Comparison

BUSINESS AS USUAL

The market’s ability to show stern resistance in the wake of the Coronavirus was on show this week as most microns recorded double-digit gains with the sub 18.5s regaining their previous series’ losses. The AWEX EMI rose by 13 cents to 1581 but lost 3 cents in US$ terms to 1052. This due to the A$ falling to 66.5 cents, the lowest point for some time. The rises for merino fleece microns ranged from 5 to 25 cents with wild fluctuations between the better style wools (40 to 100 cents higher than their indicators) with favourable AM results .The poorer style, low yielding tender types price gap was up to 200 cents. Skirtings had a good sale as the low VM (3%), good style lots finer than 18.5 added 20 to 35 cents to their values while all others were fully firm. Broad LKS and STN lost up to 15 cents as the MCI fell by just 3 cents to 1105. Finer XBs benefitted from good demand as 28s and finer jumped by 15 to 30 cents while the broader microns finished in buyers favour.

The wool industry in China is showing increasing signs of returning to some form of normality. As more and more workers are allowed back to their factories and offices mills are keen to play catch-up in processing the backlog of greasy wool. In some cases almost 4 weeks of non-production. Banks reopened “letters of credit” which granted the way for exports to be shipped and normal buying patterns look to be back in full swing. It was “business as usual” for the first time in over a month. The potential for shipping issues or financial stress didn’t appear this sale as a few participants were predicting. The big anticipated retraction in the market a month ago hasn’t happened. In fact over the past 4 sales the EMI has risen by 60 cents. Close monitoring of the shipping situation has exporters nervous as fewer container ships could lead to higher shipping charges and, without a B/L (bill of lading) the exporters TT payments cannot be made and may freeze up funds of some contracts indefinitely.

The National Council of Wool Selling Brokers of Australia (of which we are a member) held a centenary auction in Melbourne yesterday in the original Melbourne Wool Exchange building. There are 24 brokers across the country who are members of the NCWSBA and were invited to sell 17 lots each in this special sale (of which 12 participated) offering 1338 bales. Top price of 2250 cents came from the famed “Tarrangower” property in the New England. We sold wool from Orange, Brewarrina, Yeoval, Hillend, Jerangle via Cooma and Molong with 3 clients attending. Our top price was 1545 for an 18.5-75.9-0.5, 77mm-47nkt line of AAAAM a/c Bundi P’Ship from Hillend.

Southern Aurora Fwd Prices

Main Buyers (this week)

AUD/USD Currency Exchange