WEEKLY MARKET REPORT 

Week Ending 4th October, 2019

 AWEX Northern Micron Indices Comparison

DEMAND IS KING BUT VOLATILITY RULES!!

The market hit a brick wall this sale as demand almost completely dried up. The cheaper market in Fremantle last Thursday was the absolute indicator of things to come this sale as the volatility in the market continued as last series’ gains were completely wiped out when the AWEX EMI fell by 98 cents to 1511. All FLC indicators recorded triple figure losses, 120 to 145 cents. Most skirtings dropped by 80 to 110 cents bar the better style low VM types which gave up 60/80 cents. Crossbreds also suffered heavy losses - 80 to 100 cents while cardings were the only shining light to be firm to sellers’ favour. We were fortunate enough to open the sale on Wednesday and escaped most of the carnage with some NM lots 25 to 100 cents better than their indicators.

This degree of volatility has not been seen in the market according to wool buyers with 40+ years of experience. Over the past 9 weeks, since sales resumed, the EMI has lost 389 cents, regained 244 and this sale fell 98 cents. Volatility is running above 40% for 19 & 21 micron and in the last 10 years the EMI has moved either direction by more than 50 cents in a single day 19 times, with 9 since January and 7 in the past 9 sales. On two occasions has the EMI had a daily shift more than 100 cents, both in the last 6 weeks.

The shrinking volume is again front and centre with the latest release of testing figures from AWTA. September is back by 13.7% compared to last year and for the first quarter of the season the decline is 14% (55,000 bales) from last season. The total bales offered is worse, 81,500 (19.6%) less than last year so far - alarming figures.

More  Ram sales results: Allendale at Wellington cleared 78% with a top price of $3,500 to average $1320, other results from  Wellington: Mumblebone sold all but 2 rams from 200 offered to average $2905 to top out at $12,000 (2); and Boxleigh Park topped at $3,200 for a $1,490 average; Langdene at Dunedoo sold 87% to average $3,030 with a top price of $9,000; while Dunbogan 85% sold with a top of $2,600 to average $1265; at Peak Hill Westray/Genanegie cleared all 164 on offer to average $2,565 topping out at $16,000; and Cora Lynn averaged $1,645  with a top of $3,800 to clear 95%.

         Southern Aurora Fwd Prices as at 4th October, 2019       

Main Buyers (This Week)