AUSTRALIAN WEEKLY MARKET REPORT

Comment

Finally, a bit of stability in the market. Prices settled on Wednesday a little above the close in Fremantle from the previous week. That basis was the most recent to go on and the one most chose to compare against considering the extreme volatility of last week. With many local traders in China for the Nanjing Wool Conference, it was pleasing to see a small improvement from that basis on Thursday. All in all it must be considered a very positive result.

AWEX Eastern Indicator compared with 13/09/2019

Eastern Indicator

Close: 1542

Change in % +0.46

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

Authentico Index Values

15 Micron

Close: 2484

Change in %: +1.72

16 Micron

Close: 2239

Change in %: +0.49

17 Micron

Close: 2139

Change in %: +2.59

18 Micron

Close: 2043

Change in %: +0.89

19 Micron

Close: 1932

Change in %: -0.51

Authentico Indicator

Close: 2144

Change in %: +1.28

Forecast

Sale volumes remain small and while we acknowledged some wool was passed in and withdrawn in recent weeks, it’s not coming back onto the market in any great numbers. Some were of the opinion that this factor might be a negative for the market but as yet it’s not impacting on sale volumes nor the market. There will be less than 30,000 bales offered for sale next week. The relative stability around these levels is encouraging more interest from our clients. The market from October is generally quite positive historically and we see no reason for this not to continue this season.

Auction offering – current week

Selling Centres for week 12

Market          Sale          Offered             Sold       Passed In

North                    S 12                       8668                          7973                  8.0%

South                   M 12                      15027                         13233                11.9%

West                     F 12                        6440                          5801                  9.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 13                        W-T                            7559

South                      M 13                       W-T                           14904

West                        F 13                        W-T                            6827

 

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

FUHRMANN NZ MARKET REPORT

Summary

Good style slightly easier, average style very firm.

Comment

North Island only selling today with 6,200 bales on offer.  The selection consisted of mainly good/average style fleece and shears 35.0 to 40.0 micron, some crossbred hoggets good style, 32.0 to 35.0 micron and a small selection of associated oddments and miscellaneous types.  Limited competition with pressure mostly from Europe and the United Kingdom.

Fleece Wools

Good style crossbred fleece buyers favour.

Average style crossbred fleece very firm.

Second Shears

Good style buyers favour.

Average style very firm.

Oddments

All descriptions up to 5% dearer.

Passings

21% Passed In.

Next Auction

South Island only selling with 11,200 bales on offer 26th September.

Fleece Wools Summary

 Good Style
Variation %: Buyers favour

Average Style
Variation %: Very Firm

Second Shears Summary

 Good Style
Variation %: Buyers favour

Average Style
Variation %: Very Firm

Oddments

All descriptions
Variation %: 5

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer.

COMMENT

All descriptions closed on average around 1% dearer.

FLEECE

15.0 to 16.0 micron came under strong pressure, especially better non mulesed lots and closed 2% dearer.

16.5 / 17.5 micron 1 to 2% dearer.

18.0 / 19.5 micron up to 1% dearer.

20.0 / 21.5 micron 1 to 2% dearer.

SKIRTINGS

17.5 micron and finer 1 to 2% dearer.

18.0 / 19.0 micron 1% dearer.

OPEN TOP

Nominally 1% dearer.

EASTERN AUSTRALIAN MARKET REPORT

Market positive but difficult to compare with the volatility of last week and Melbourne selling in isolation.

COMMENT

Most descriptions were a little dearer than the close of Fremantle but around 1 to 2% easier than Melbourne. Sydney didn’t sell last Thursday.

FLEECE

Compared to Melbourne

Best 18.0 and finer fully firm

All others 1 to 2% easier

SKIRTINGS

1 to 2% easier compared to Melbourne.

OPEN TOP

Nominally 1% easier.

Woolly warm welcome to our new staff members

All in on sustainability

The Schneider Group creates a Group-wide Sustainability Manager position

Willy Gallia - Sustainability Manager

Starting September 2019, Willy Gallia has joined the Schneider Group team as the Sustainability Manager. This newly created position is part of a wider Group strategy to push wool as a sustainable fibre while also continuously improving the existing supply chain from farm to top.

Giovanni Schneider explains: “Over the past couple of years we have invested into several key steps to offer our clients sustainable and traceable wool top. We are now seeing traction in demand for our sustainable approach, which made it the right moment to focus all of our efforts in the hiring of a Sustainability Manager.”

Part of the Schneider Group sustainability investment is the set up of the Authentico Integrity Scheme for wool in Australia and New Zealand as well as cashmere in Mongolia. Furthermore the company runs its own Organic and RWS certified sheep farms in Patagonia. With these two sourcing models, the company can ensure full traceability back to the farm.

Willy Gallia has been working for the Schneider Group since 2006 and brings relevant experience from his previous position as Commercial & Sustainability Manager at Fuhrmann Argentina, part of the Schneider Group based in Trelew. Together with the Fuhrmann team, Willy oversaw the alignment of the farm management, processing mill and commercial sector with the overall vision obtaining organic wool certification and Responsible Wool Standard. Just recently, Willy conducted a Life Cycle Assessment for the Fuhrmann Argentina operation and offset the emissions to offer the first carbon-neutral wool tops in the market, a project that will be extended to the whole Schneider Group.

Willy is based in the Verrone office in Biella, Italy and will be looking to work closely with suppliers, customers and third-party organisations to ensure a sustainable and traceable supply chain from farm to product.

Young Talent

Meet our new Junior Trader for the Italian Market

Sara Monteleone

Already some months ago, on 15 April 2019, Sara Monteleone joined The Schneider Group as Junior Trader assisting in servicing all Italian based clients. Sara is being mentored by Claudio Ceria to learn the specifics of the wool trade while also working closely as part of the Trading team with CEO Jeffrey Losekoot and Marco Spina.

Despite not having a wool textile background, Sara became passionate about wool right after touring the Verrone wool combing mill for the first time. ‘I was surprised about the huge world there is behind wool and speciality fibres. When I had my first tour in the mill I was especially impressed by the way the greasy wool arrives and then becomes tops and open tops after the combing process”, Sara remembers her first day at work. Since then Sara has become an expert in giving tours around the mill for visiting clients as it helps her better understand the product she is selling.

As a young person entering the wool trade, Sara is also very much motivated to be working for a company putting an emphasis on sustainability and traceability. Sara concludes that “these are two key points in order to not only be relevant in the global market but especially for saving our planet”.

Sara is yet another young team member joining the Schneider Group. CEO Jeffrey Losekoot explains: “For us, at the Schneider Group, it is important to continue developing our product, our service, and our skills for a sustainable future for wool and with wool. Having young motivated members join our team is an important step in the process and we are happy to welcome Sara Monteleone on board.”

Sara is also based in the Verrone office in Biella and is available to all Italian customers inquiries.

Update of Authentico in regards to pain relief

Pre- and post-operative pain relief required

The Schneider Group Authentico Integrity Scheme has updated its requirements in case of mulesing status PR. Since September 2019, Authentico requires pre- and post-operative pain relief to be eligible for registration.

The Authentico team is constantly reviewing what is the best welfare outcome for the sheep that are being mulesed. A report in the AWI June 2018 edition of Beyond the Bale headed “Research co-funded by AWI has shown that using a combination of the Tri-Solfen® and Buccalgesic® pain relief products provides more prolonged relief from mulesing than using each of the products on its own.” This finding is supported by CSIRO research undertaken in Armidale, NSW, by Dr. Alison Small, Principal Research Scientist, Animal Behaviour and Welfare Team. This research is not limited to Buccalgesic only but also other Meloxicam products like Metacam 20. At a recent event in Dubbo, each of the pharmaceutical companies supported and acknowledged this fact, that their products are most beneficial when used in conjunction with the other.

With the start of the Authentico Integrity Scheme at the beginning of 2018, registered Authentico growers were asked as a minimum to use a Meloxicam product, with or without TriSolfen in the case of mulesing. This science-based evidence provided by the CSIRO indicates that the best practice is to use a Meloxicam product (Buccalgesic or Metacam20) in conjunction with TriSofen. The Schneider Group has therefore decided to update the certification requirement of Authentico to reflect this.

Many Authentico registered woolgrowers are already following this practice and have been contacted by the Authentico team to update their records accordingly. Where pre- and post-operative pain relief is not yet being applied, the Authentico team will work together with growers to work towards this solution. In any case, this change affects only a small number of growers as 95% of all Authentico registered wool growers have either ceased mulesing or are already working a non-mulesed operation.

The Schneider Group also notes the recent development that has resulted in Sustainawool now in the hands of AWEX. We acknowledge that this is a direct result of the growing interest in animal welfare and traceability within the supply chain. This justifies our investment in Authentico and we will continue to grow Authentico ensuring even greater relevance of this brand within the supply chain. Authentico is here to stay and will be developed further using our own combing mills to ensure full traceability of your wool to our clients.

Growers and brokers who have any further questions or concerns are invited to contact the Authentico team at the Schneider Group office in Sydney.

 

Image by Chantel McAllister

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was an extraordinary market reversal this week with all prices advancing significantly. It’s difficult to understand the mechanisms that result in such activity. Exporters and processors have been unable trade greasy wool or wool tops for a few weeks. This has resulted in a free fall in market prices. Confusion has been exacerbated by the general global market uncertainty, international trade negotiations, or lack thereof, and prices coming from what was perceived as an historically high level. But we have remained confident in the fact the consumers had not abandoned wool to the extent that you would believe by following the market spiral downwards. What was needed was some confidence at a new level and for growers to reserve their right to withdraw wool from sale or to pass it in when offered a price below their reserve. This is what they did. Eventually the two lines crossed and exporters were unsure of short-term supply amidst more general enquiry across the global wool supply chain. Traders opted not to offer forward and from there it had to react. Even if a customer wanted wool, no one was prepared to sell it. Supply was too limited. Now there are few exporters and traders with any greasy wool stock who are prepared to offer forward. This has resulted in Chinese Topmakers chasing wool at Thursday’s auction ‘at best’ and without giving instruction on price. The perfect storm!

AWEX Eastern Indicator compared with 06/09/2019

Eastern Indicator

Close: 1535

Change in % +12.45

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

Authentico Index Values

15 Micron

Close: 2442

Change in %: -0.12

16 Micron

Close: 2228

Change in %: +0.54

17 Micron

Close: 2085

Change in %: +1.46

18 Micron

Close: 2025

Change in %: +3.69

19 Micron

Close: 1942

Change in %: +12.45

Authentico Indicator

Close: 2117

Change in %: +2.62

Forecast

The Schneider Authentico contracts would have been a good option for growers who have offered wool in the first few months of this season. They are designed to reduce the volatility in price by utilising six- or twelve-month averages as the base and adding premiums for processing and style quality. The perfect method to insure against selling or buying at the extremes seen in recent weeks. They are restricted to clips certified under the Authentico quality scheme who no longer mules and target fine and superfine wool clips only. We think that the critical level of supply will ensure continued market volatility in the short term. It’s hard to know when to buy or sell so all options should be considered. We’ve chosen to follow the market each week, albeit cautiously. There is no better way during these volatile and uncertain times.

Auction offering – current week

Selling Centres for week 11

Market          Sale          Offered             Sold       Passed In

North                    S 11                       5191                           4777                  8.0%

South                   M 11                      9672                           9331                  3.5%

West                     F 11                       4330                          4084                  5.7%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 12                        W-T                            8885

South                      M 12                       W-T                           15802

West                        F 12                        W-T                            6420

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 50 cents dearer, skirtings 50 cents dearer, open tops 25 cents dearer.

FLEECE

The market opened 50 cents dearer today, however as the sale progressed some exporters pulled back which saw prices soften by 20-30 cents towards the close. The finer end received most support through the day and the broader end was less affected by the price rises.

Fleece had a passed-in rate of 4.2%.

SKIRTINGS

Skirtings were generally 50 cents dearer.

OPEN TOP

Open tops were generally 25 cents dearer on a very limited selection.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market significantly dearer again. Melbourne sold in isolation.

COMMENT

Chinese indent orders dominate.

FLEECE

All Chinese specification fleece types were 5 to 6% dearer with finest most affected. Better Italian types least affected.

SKIRTINGS

All descriptions 4% dearer.

OPEN TOP

Nominally 4 to 5% dearer. Still a little early in the season for good open top lamb types.

NEW ZEALAND MARKET REPORT

Summary

New Zealand market recovers some of it’s losses.

Comment

The New Zealand market weathered the recent ups and downs seen in Australia since the last South Island sale and showed definite signs of recovery.  The merinos generally saw increases averaging 5%, although coarser wools, 18 to 20 micron saw bigger percentage increases.  As has consistently been the case better specified wools continue to attract strong competition.  Coarser wools up to 30 micron showed significant increases between 5-10%.  There was good widespread competition across the catalogues.