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Australian Weekly Market Report

Published February 15, 2019 by Tim Marwedel

Comment

The wool market continues to strengthen. All types and descriptions are being keenly sort after and price levels have advanced weekly since sales resumed in early January. Buyers seem concerned simply for volume. The most inferior types were as keenly competed for as were the good lots this week. We couldn’t emphasis the variable range of quality on the market enough at the moment. It would be a fair assumption to suggest that the offering in the northern market this week would be the smallest (according to AWEX smallest in 5 years) and poorest quality selection in recent memory. We must be alarmed at the sudden deterioration in quantity and quality. But still the market goes up. No doubt customers will be doubting the level of price but those that don’t follow the market cautiously and regularly run a serious risk. We’ve seen what has happened in the last 3 years. Supply was still reasonable during that period but now the grower held stock numbers are more or less nil. This market is clearly driven by supply and if wool is needed, even in small volumes, the price is under pressure.

AWEX Eastern Indicator compared with 08/02/2019

Eastern Indicator

Close: 1968

Change in %: +1.23%

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

Schneider Indicators compared with 08/02/2019

15 Micron (*)

Close: 2,902

Change in %: +1.38

16 Micron

Close: 2,684

Change in %: +1.60

17 Micron

Close:  2,488

Change in %: -1.69

18 Micron

Close: 2,401

Change in %: +1.79

19 Micron

Close: 2,252

Change in %: +1.42

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

Sheep numbers continue to be reduced and lambing percentages have been affected by the ongoing drought. This is certain to keep downward pressure on the size of the national flock into next season adding further uncertainty to wool prices. On the other side, the level of price for the raw materials must have an impact on wool consumption with our customers cautious regarding their sales. Demand must be impacted despite the wonderful stories of wool innovation in retail and the new modern way in which wool is being used. Uncertain times ahead for sure.

Auction offering – current week

Selling Centres for week 33

Market          Sale          Offered          Sold          Passed In

North                    S 33                7563                     7047                  6.8%

South                   M 33               23016                  21923                  4.7%

West                     F 33                9586                    9060                   5.5%

Auction offering – next week

Market          Sale          Sale days          Volume

North                   S 34                 W-T                            9516

South                  M 34                 W-T                           24453

West                    F 34                  W-T                            8500

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