Exchange rate fluctuations to avoid risks Australian wool market Polyester Jacquard Napkins,Jacquard Cloth Napkins,Polyester Napkin,Jacquard Napkins Shaoxing Jinsai E-commerce Co.,Ltd , https://www.mangatacasatextile.com
In the spring of March of the Yangchun Spring Festival, the textile fabrics exhibitions were held in succession. From the perspective of the exhibition and market conditions, the decline in domestic demand for worsted textiles is irreversible. Wool textile fabric companies need to change rather than stick to it. The development of fabric varieties must keep pace with the needs of apparel companies and consumers, and in the free competition of the market, To achieve the survival of the fittest.
The RMB exchange rate devaluated after hitting 6.04 at the beginning of this year. On March 17, the central bank announced that the RMB exchange rate against the US dollar has increased from 1% to 2%. In March, the RMB depreciated by nearly 3.2%, plaguing a nearly 3% increase in the whole year last year. . The ever-expanding exchange rate fluctuation range is favorable to foreign trade companies, and export profits have rebounded. However, the risk of foreign exchange fluctuations at the same time also makes the company's foreign trade orders "short-term" phenomenon is prominent, the game order price increases, the difficulty of judgment of foreign exchange settlement increases. Based on the uncertainty of RMB exchange rate, therefore, the majority of wool companies must manage their exchange rate risks and lock in the business to avoid risks in order to reduce losses caused by unpredictable exchange rate fluctuations.
In March, the Australian wool market had already had some wool with autumn characteristics. Due to the severe drought in summer, the amount of grass was generally higher, the number of good quality wool was reduced, and the price was affected. The auction price of wool this month went all the way down. The herdsmen reluctantly took pictures, the outflow rate rose, and the market was exhausted. In particular, the fine support fell sharply, while the coarse hair prices were firm. For the last auction of the month, the Australian Eastern Market Index EMI Auction closed at 1006t/kg, down 7% from the previous month's close.
After reaching a maximum of 1.05 in April last year, the Australian dollar fell sharply and weakened all the way to the lowest level of 0.88 at the beginning of this year. The Australian Central Bank adjusted its monetary policy to become neutral. The Australian dollar’s ​​market sentiment has improved and its short-term performance has strengthened. The Australian dollar exchange rate stayed above 0.90 this month and closed at 0.924 at the end of the month.
New Zealand wool market
In March, due to stable demand, limited supply, and export shipment requirements, the gross increase in gross price was promoted, while the New Zealand dollar was strong all the way, restraining the gross price. The herdsmen reluctantly sold their goods with a clear attitude and the transaction rate dropped. There were no fine and mid-tier merino wool auctions this month, while the fine-branched gross, coarse-bred hybrid and lambs' wool indexes fell by 1.6%, 3.2%, and 6.2% respectively from the previous month's close. The price of lambs has fallen by a large margin.
Following the direct transactions between the renminbi and currencies such as the US dollar, Japanese yen and Australian dollar, from March 19 onwards, the renminbi also achieved direct transactions with the New Zealand dollar. This is conducive to the formation of a direct exchange rate between the renminbi and the New Zealand dollar, reducing the exchange rate of economic entities, promoting the use of the renminbi and the New Zealand dollar in bilateral trade and investment, and facilitating the exchange of wool trade between China and Singapore. This month, the Singapore dollar continued to appreciate against the US dollar and closed at 0.8593 at the end of the month. The Singapore dollar also continued to appreciate against the yuan and closed at 5.376 at the end of the month.
South African wool market
Due to the huge supply and rising exchange rate of the Rand against the US dollar, coupled with the weakening trend of other international markets, the South African wool market has slightly declined this month, while the 21-micron-plus fine-grained coarse-grained wool market has fierce competition. The Cape Merino index fell continuously and closed at 108.59 rand/kg (net gross) this month. The South African Rand exchange rate against the US dollar stabilized this month, with the last auction closing at 10.69 at the end of the month. This month's auction was modest, with a total of 36,687 bales and a transaction rate of 97%.
The wool market is sluggish and prices fall
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