What a significant reversal of market form! We have been of the opinion for some time that little had changed and the limited supply will continue to encourage market volatility. After the significant downward trend, prices were always going to react in reverse sooner rather than later. It’s usual for prices to over-react in such circumstances. 18.5 to 22.0-micron merino were all 5% dearer for the week. 28.0-micron crossbreds were 10% dearer over the two selling days. The most noticeable factor remains the keen interest for non mulesed wool. Momentum continues to build with interest for 17.0 to 21.5 micron non mulesed wool clearly reaching new heights. Market signals have never been clearer with regards to what the customer is demanding.
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.
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We mentioned limited supply being the key market factor. AWEX seasonal comparisons for first hand offered clean kg’s has now reached an incredible 20% reduction year on year over the same period. On that basis we can see a 20% reduction in demand and we should still be square in terms of supply and demand. Just the three sale weeks remain until a three-week Christmas recess. As we pointed out last week, stocks of greasy wool must be running low. Lower sale volumes and recently high passed in rates eventually forced the sharp spike this week, but what remains unclear is if demand remains strong through the pipeline.
Auction offering – current week
Selling Centres for week 21
Market Sale Offered Sold Passed In
North S 21 7852 7660 2.4%
South M 21 15016 14343 4.5%
West F 21 7893 6992 11.4%
Auction offering – next week
Market Sale Sale days Volume
North S 22 W-T 9239
South M 22 W-T 19441
West F 22 W-T 7767
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