Australian Weekly Market Report

Published January 25, 2019 by Charlie Toll

Comment

It was another sound performance for the wool auction market. Sales were conducted on Wednesday and Thursday and another $78.1 M worth of wool changed hands. There were typically some variables but this was heavily influenced by the offering. Many reports refer to ‘large discounts’ for inferior wools. This was more of an issue in the larger volume offering in Melbourne. In Sydney, these so-called inferior types seemed to attract very good competition. In fact, the better specifications look the best value when all things are considered. Regardless, it was another positive market tone with very few holes across the offering. All types and descriptions are being keenly sought after.

AWEX Eastern Indicator compared with 17/01/2019

Eastern Indicator

Close: 1927

Change in %: +0.21%

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

Schneider Indicators compared with 17/01/2019

15 Micron (*)

Close: 2,671

Change in %: -2.55

16 Micron

Close: 2,531

Change in %: -1.58

17 Micron

Close:  2,440

Change in %: +0.86%

18 Micron

Close: 2,324

Change in %: -0.09

19 Micron

Close: 2,200

Change in %: -0.55

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 general quality of the selection is of great concern to us but this is not unexpected. Auction quantities are dropping too, with a maximum of 40,000 bales expected per week in the foreseeable future. There is no doubt that the small offerings of vastly variable qualities will continue to play an enormous factor in determining the market direction in the next six months. We understand demand has been reduced, that is clear, but with grower ‘first hand’ auction quantities down by 20% for the season to date, this must also be a strong consideration when thinking about the level of price we could expect in the medium term.

Auction offering – current week

Selling Centres for week 30

Market          Sale          Offered          Sold          Passed In

North                    S 30                9829                   9031                  8.1%

South                   M 30               22127                  20135                9.0%

West                     F 30                9801                    8583                 12.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                   S 30                 W-T                             8929

South                   M 30                W-T                            21683

West                    F 30                  W-T                            10017

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