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Australian Weekly Market Report

Published November 8, 2018 by Tim Marwedel

Comment

Another easing trend this week but with a more positive tone on better fine wool as they seem to be gaining favour from Italian interests at these new levels, particularly 17.0 to 19.0 micron. Despite it being a designated superfine sale, volume of quality fine wool was very limited and nothing like it was in the past. It’s been a significant market correction over the past month and growers are offering their wool with some hesitation. About 20% of the original offering was either passed in or withdrawn from sale prior with the result of only 25,000 bales being sold to the international trade. There was a clear distinction between the better lots, now being offered as a smaller percentage of the total offering, and the more inferior wool types which are quickly starting to dominate the selection. The longer, lower strength and lower yielding wool is more suited to Chinese production and while these types are in big supply and the Chinese market is quiet, there can only be one result on these types.

Non mulesed wool was again less affected by this week’s market change.

AWEX Eastern Indicator compared with 2/11/2018

Eastern Indicator

Close: 1776

Change in %: -4.2%

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

Schneider Indicators compared with 2/11/2018

15 Micron (*)

Close: 2876

Change in %: -1.20

16 Micron

Close: 2640

Change in %: -1.82

17 Micron

Close:  2396

Change in %: -2.44

18 Micron

Close: 2226

Change in %: -3.05

19 Micron

Close: 2076

Change in %: -4.24

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

The national production figures are due to be updated shortly. Not only are the net kilograms of wool production expected to fall further, with the drought affected lower yields, the clean kilogram equivalent is expected to be impacted even more. We will advise some detail when it becomes available.

Auction offering – current week

Selling Centres for week 19

Market          Sale          Offered          Sold          Passed In

North                   S 19                 8625                     7116                17.5%

South                   M 19               17172                   14086              18.0%

West                     F 19                6392                     4253                33.5%

Auction offering – next week

Market          Sale          Sale days          Volume

North                   S 20                W-T                            10161

South                  M 20                W-T                            21419

West                    F 20                W-T                             8303

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