WEEKLY MARKET REPORT Week Ending 6th March, 2020 AWEX Northern Micron Indices Comparison
WOOL SALES RESUME ON A SOFTER NOTE Wool sales recommenced this week as most participants reported that essential components of the software programme were up and running enough to conduct the wool sale. The elevated offering of 69,000 bales didn’t eventuate; the total selection came to 62,000 bales (the largest weekly offering for 12 years) of which 24% was passed-in, most of that in the last session. The opening day actually saw modest increases on the Eastern seaboard but a bit cheaper in Fremantle but, by late on the final day, the extra quantity and big volumes of poorer style types was too much for the trade to absorb as the market tailed off. Losses ranged from 5 to 20 cents for all merino fleece microns with discounts for inferior types becoming larger - another 50 to 100 cents off. Skirtings followed the merino fleece price direction - dearer for the better types in the opening session only to fall away late on the final day to finish 10 to 30 cents lower. Locks were the only type to lose ground in the carding sector (20 to 30 cents back) while crossbreds withstood most of the negative tone in the merino sector to finish the week 5/10 cents off. The scenario of pushing 2 weeks of wool sales into one wasn’t ideal but, under the circumstances, the trade was left with no alternative. The higher volume, the quality of the offering and the FRX that favoured the US$ by 1% after it hit its lowest point since the GFC last week was always going to put the market under pressure. It was only early last week before the cyber attack on Talman that showfloor chatter had the market adding to its values but now uncertainty is commonplace as to where the market might be headed as Covid-19 spreads to Europe and other parts of the globe but good news may be coming from China as the number of deaths and reported cases has been on the decrease over the past 48 hours. Global economic growth will be stymied in the March and June quarters as panic on stock markets this week had investors running for cover as the big sell-off came amid fears of a global recession caused by Covid-19 which will curb consumer spending dramatically sending demand for a vast array of goods (including woollen clothing and products) lower. Quantities next week drop to a more manageable 46,000 bales as Melbourne is the only centre to have a bit of a backlog of wool from the last 2 weeks. We hold our breath that financial stress for buyers is over and letters of credit keep flowing in and demand holds. If anyone has any agistment available could they please contact Luke or Don. Despite the widespread rain we still have clients in need of water and are still feeding their stock. Southern Aurora Fwd Prices
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Main Buyers (This Week)
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