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Australian Weekly Market Report

Published October 19, 2018 by Tim Marwedel

Comment

All types and descriptions were cheaper. By the middle of the sale yesterday buyers were looking for some value or a reason in any particular lot to buy it. The lots that were ‘not declared’ under the AWEX National Wool Declaration or those that were mulesed without pain relief suffered the biggest loses. While the NM declared lots were easily the least affected by the easing market. It seems a good business sense as well as good animal welfare practice to use, as a minimum, the pain relief product. Those lots along with NM or CM declared lines are available to more buyers and more regular demand and it’s during a falling market that this advantage is most noticeable.

The better wool now appears very much the best value as they are now much closer to the average Chinese types in price. As the selection deteriorates, which will happen over the next month or so, we expect the gap to widen again.

AWEX Eastern Indicator compared with 12/10/2018

Eastern Indicator

Close: 1970

Change in %: -2.62%

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

Schneider Indicators compared with 12/10/2018

15 Micron (*)

Close: 3192

Change in %: -1.79

16 Micron

Close: 2856

Change in %: -2.63

17 Micron

Close:  2609

Change in %: -0.57

18 Micron

Close: 2404

Change in %: +1.62

19 Micron

Close: 2291

Change in %: -0.26

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

Almost 20% of the 36,000 bales offered this week failed to meet grower reserves. We aren’t convinced that the money isn’t enough, more the fact that they haven’t been able to adjust quickly enough to the falling trend. That does allow another 6,000/7,000 bales in grower stocks to ease any shortfall in coming weeks. We are still 13% down on offered volume compared to the same period last year and just 38,000 bales to be offered next week. We expect a deterioration in the quality of the offering to occur quite quickly now. The staple break point is moving towards the middle and this tends to reduce the value of the wool. Processing performance can be significantly affected by a high middle break.

On a very positive note, we are aware of some reasonable rain events in western NSW and Queensland in some of the worst drought affected areas. We hope it fills in more broadly as some localised storms are on the radar for the next few days.

Auction offering – current week

Selling Centres for week 16

Market          Sale          Offered          Sold          Passed In

North                   S 16                 8342                     7126                 14.6%

South                   M 16               20229                  16289                19.5%

West                     F 16                7513                     5656                 24.7%

Auction offering – next week

Market          Sale          Sale days          Volume

North                   S 17                W-T                             8842

South                  M 17                W-T                            22627

West                    F 17                W-T                             7233

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