WEEKLY MARKET REPORT 

Week Ending 29th November, 2019

 AWEX Northern Micron Indices Comparison

MARKET STALLS!!

The recent pattern of price movement was broken this sale as the “up and down” direction over the past 6 to 8 weeks shifted to a falling trend now into its 5^th selling day (a 50 cent reduction). Last week’s Thursday firming market in Fremantle gave a false hope that the market would tract upwards but that wasn’t to be. Steady falls over both days saw the AWEX EMI fall by 25 cents to 1530, a similar margin (22 cents) in US$ terms to 1035 despite the FRX falling by 0.30 of a dollar to 67.65 cents - a worrying sign when the market falls and the FRX goes in our favour.

All fleece types fell as all microns gave up 15 to 35 cents with the poorer style types (MF6/7) neglected even more by 50 to 80 cents. Only the very best style (MF3 and better) and NM lots were immune from the discounts. After a few sales of maintaining levels skirtings suffered losses of 30 to 50 cents except < 2.5%VM which halved those falls. All types in the Carding sector were fully firm to sellers’ favour and XBs recorded losses on both days to finish 30 to 45 cents off the pace.

Signs of weaker demand are coming to bear at the present time which is critical for the Autumn/Winter retail season in the Northern Hemisphere. Current price trends and the level of consumer confidence are reflecting the uncertain economic conditions in many countries. Many EU economies have weakened over the past 12 months as consumer confidence wanes there as well in Japan which is at its lowest level for 7 years and worst since 2017 in South Korea. On the flip-side US consumers remain upbeat with low unemployment, a strong economy and wages increasing and stronger consumer confidence in China - a welcome turnaround from low economic growth and the trade war impact with the USA.

More news from the AWI AGM: The main item was the ousting of one-time Chairman and long term director Wally Merriman. The board also announced a further reduction in expenditure and draw down of a further $7.5 million from its reserves due to the less than anticipated levy revenue as a result of less wool being sold, lower prices and the levy % down to 1.5% from 2% which started July this year. The board has also commissioned a review of WoolQ (the platform that has cost several $million). Over 41,000 bales are on offer next week giving the buyers too much of a chance to take a “pick and choose” approach to the market.

Southern Aurora Fwd Prices              

Main Buyers (This Week)