The brief period of confidence that appeared last week at the Australian wool auctions evaporated wholly at this week’s markets. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) plummeted 155ac or 10.8 per cent to 1287ac clean/kg—a record of the largest percentage fall in the AUD EMI to have occurred in the past two decades.

 

The brief period of confidence that appeared last week at the Australian wool auctions evaporated wholly at this week's markets. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) plummeted 155ac or 10.8 per cent to 1287ac clean/kg—a record of the largest percentage fall in the AUD EMI to have occurred in the past two decades.#

The US Dollar (USD) EMI was significantly affected as well but less so given the continuing recovery of the AUD against the USD, as well as all other major currencies. In USD terms EMI dropped by 7.8 per cent or 67usc to a closing level of 788usc clean/kg. The passed in rate this week was 44.9 per cent, one of the highest to be seen.

 

The brief period of confidence that appeared last week at the Australian wool auctions evaporated wholly at this week's markets. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) plummeted 155ac or 10.8 per cent to 1287ac clean/kg—a record of the largest percentage fall in the AUD EMI to have occurred in the past two decades.#

Bearing in mind the USD rose 6.8 per cent last week, the true demand indications are not as disastrous as they first appear. Growers are paid in AUD, so that is the currency by which woolgrowers run their businesses. Supply is becoming even scarcer as evidenced by the latest key test data from AWTA which has year on year wool tested comparison at 6.5 per cent lower, the Australian Wool Innovations (AWI) said in its commentary for sale week 40 of the current wool marketing season.

 

The brief period of confidence that appeared last week at the Australian wool auctions evaporated wholly at this week's markets. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) plummeted 155ac or 10.8 per cent to 1287ac clean/kg—a record of the largest percentage fall in the AUD EMI to have occurred in the past two decades.#

The buyer support in the previous week was apparently a result of Chinese wool buyers assuming Australia’s wool industry would be going into lockdown – similar to most other global producing countries. Early in the week, however, when it became clear that auctions were to continue, last week's decision to buy proved somewhat premature. This was exacerbated by the confirmation of the extra sale week going ahead in week 42 where a recess week had originally been rostered, AWI said.

 

The brief period of confidence that appeared last week at the Australian wool auctions evaporated wholly at this week's markets. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) plummeted 155ac or 10.8 per cent to 1287ac clean/kg—a record of the largest percentage fall in the AUD EMI to have occurred in the past two decades.#

"The advice from textile leaders last week from China indicating they are now almost back to full gear operation seems somewhat inconsequential now. Under the present global operating conditions, it is problematic that that nation relies upon supplying a great portion of the rest of the world in textiles. If those businesses in those countries fail to meet contractual obligations then the chain breaks and reassessment needs to be staged, usually resulting in an initial raw material price and demand reduction," it added.

 

The brief period of confidence that appeared last week at the Australian wool auctions evaporated wholly at this week's markets. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) plummeted 155ac or 10.8 per cent to 1287ac clean/kg—a record of the largest percentage fall in the AUD EMI to have occurred in the past two decades.#

Around 44,000 bales are scheduled for auction next week.

 

The brief period of confidence that appeared last week at the Australian wool auctions evaporated wholly at this week's markets. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) plummeted 155ac or 10.8 per cent to 1287ac clean/kg—a record of the largest percentage fall in the AUD EMI to have occurred in the past two decades.#