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Australian Weekly Market Report

Published August 17, 2018 by Tim Marwedel

General Market Summary

Week 07 – 2018 will be well remembered with the market moving further to record levels at a rate rarely seen. According to AWEX reports, the price rise on Wednesday was the largest daily increase since 2002, the weekly result was the largest weekly increase since the same time and the AWEX EMI at another all time high. This was not expected. Currency fluctuations were expected to help local prices but not to the extent they did. The volume eventually offered was just over 36,000 bales and an incredibly low 1.5% was passed in nationally for the week. The increase in the average market is well published but the market for the best fine wool was even stronger. The better types 16.0 / 18.0 micron were being bought at best in both the fleece and pieces range. It’s unlikely to be an increase in demand that is fuelling this, rather ongoing concerns for supply and requirements for prompt production.

AWEX Eastern Indicator compared with 10/08/2018

Eastern Indicator

Close: 2116

Change in %: +6.33%

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Schneider Indicators compared with 10/08/2018

15 Micron (*)

Close: 3701

Change in %: +6.87

16 Micron

Close: 3172

Change in %: + 3.69

17 Micron

Close:  2809

Change in %: +8.29

18 Micron

Close: 2508

Change in %: +7.09

19 Micron

Close: 2370

Change in %: +6.52

Each indicator is expressed by a number representing a market quotation for a selected range of types and is not a price expression and it’s not influenced by currency fluctuations.

Wool indicators are anyway based on Australian Dollar.

If you want to learn more about SCHNEIDER indicators Click here.

Forecast

Less than 30,000 bales for offer next week including no sale in Fremantle was a likely factor playing on buyers minds this week. It is becoming difficult to source the required wool. While the current market doesn’t seem to be behaving in a ‘normal’ fashion, we note that week 6 and week 7 last year (August 2017) were also very strong with an overall increase in the EMI of 5.9% over those two weeks. In the last two weeks, while it might seem alarming, the market has increased by a similar percentage, 6.8%. Wool delivery requirements for October must play a part in this trend. Last year the market then fell in week 8 before settling through September and picked up again in October. This trend is often the case. Time will tell if this week was an extraordinary anomaly. Small sales, like the one next week, often result in a market that we least expect.

Auction offering – current week

Selling Centres for week 07

Market          Sale          Offered          Sold          Passed In

North                   S 07               12871                    12705              1.3%

South                   M 07              18971                   18681              1.5%

West                    F 07               4460                    4373                 2.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                   S 08                T-W                            10447

South                   M 08               T-W                            19366

West                    no sale

If you want to see the complete Wool Sales Roster click here.