EASTERN AUSTRALIAN MARKET REPORT

Market eases again.

COMMENT

Once again the better style wools remain firm, the poorer style wools continued easing in what was a generally poor selection.

FLEECE

The best style and spec fleece were still very well supported. The good/average style wools were par to 1% easier.

SKIRTINGS

Best style skirts remained firm. B and C fault skirts 1% easier.

OPEN TOP

Generally unchanged in a limited selection.

FREMANTLE MARKET REPORT

COMMENT

Fleece slightly cheaper by 10 cents, skirtings and open tops 20-30 cents cheaper.

FLEECE

Fleece prices opened on a firm note before easing by around 10 cents during today’s sale.

Fleece had a passed-in rate of 17.6%.

SKIRTINGS

Skirtings were generally 20-30 cents cheaper today.

OPEN TOP

Open tops were generally 30 cents cheaper.

 

EASTERN AUSTRALIAN MARKET REPORT

Market slightly easier.

COMMENT

Best styles and specification were well supported again today, whilst those with a little more fault were easier.

FLEECE

Best style well supported. good/ave style irregular. inferior 1-2% easier.

SKIRTINGS

Best firm, b/c fault 1-2% easier.

OPEN TOP

Generally unchanged in a limited selection.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Auction sales resumed after the Easter Recess. A slightly larger sale this week with 43,000 bales on offer and the Australian dollar 2.4% and 1.5% easier against the USD and EURO respectively since the last auction on 17th April. Prices opened stronger but not to the full extent of the currency adjustment. There was little change on Thursday and buying activity was as stable as we’ve seen in recent weeks. Perhaps confidence has been helped by consideration of quantities to come between now and August.

 

AWEX Eastern Indicator compared with 17/04/2019

Eastern Indicator

Close: 1960

Change in % +0.87%

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

Schneider Indicators compared with 17/04/2019

15 Micron

Close: 2,672

Change in %: -0.26

16 Micron

Close: 2,452

Change in %: -0.73%

17 Micron

Close:  2,367

Change in %: +0.21

18 Micron

Close: 2,322

Change in %: +1.85

19 Micron

Close: 2,201

Change in %: +0.50

 

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

Despite the well documented reduced production, AWTA test data indicates an increase by 78.8% of wool tested 16.5 micron and finer to the end of April compared to the same period last season. 17.0 micron, an increase of 23.0%. Despite this quite dramatic volume increase and reports of a drop in consumption of fine wool, the AWEX Micron Price Guide for 17.0 (MPG) published this week still has it in the 73rd percentile for the last 5 years. Meaning prices have been lower than this level 72% of the time over the past 5 years. This is quite a strong point for the potential of 17.0 micron and finer to improve when the better quality selection becomes available from August. Supply is expected to decrease (drought and poor lambing last year) and a possible shift to a better growing season this year (time will tell) could easily result in a reduction in volume of tested fine wool. There is currently only about a 7% difference in average price between 17.0 micron and 21.0 micron to add further thought to this prospect. Crossbred wool (25.0/30.0 micron) remain at historically high levels. Crossbred producers should take care of their valuable product and employ a classer to prepare their clip to the Code of Practice to obtain full advantage of this current trend.

Auction offering – current week

Selling Centres for week 44

Market          Sale          Offered             Sold       Passed In

North                    S 44                     10443                       10120                 3.1%

South                   M 44                     21790                      20592                 5.5%

West                     F 44                      10820                        9578                 11.5%

 

Auction offering – next week

Market          Sale          Sale days          Volume

North                   S 45                        W-T                             8159

South                   M 45                       W-T                            19248

West                     F 45                        W-T                             6057

 

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

IWTO Congress 2019 Report

The discussion about sustainability is becoming more diverse

On 9-11 April 2019, the 88th IWTO Congress took place in Venice, Italy. Over 320 delegates attended the event representing the entire wool supply chain from all key wool growing and manufacturing countries.

Besides providing a great networking opportunity, the IWTO Congress offers a unique opportunity for learning about new industry developments and sharing views on key issues during presentations and panel discussions. In this report, we wish to share our summary of the event with you.

The event was opened by Eco-Age founder Livia Firth, a well known sustainable fashion evangelist married to actor Colin Firth. The Italian sustainability expert showcased her movie ‘Forever Tasmania’ where she talks to Wool Growers and researchers about animal welfare and sustainable production. Livia’s message to the wool industry was to continue to collaborate across the whole supply chain and to co-invest into research on sustainability. According to Ms. Firth, this was especially important as wool is a strategic key component in reducing fast fashion and minimising the related pollution of microplastic fibres in our oceans. ‘The time for wool is now’, Livia Firth concluded her message to the industry.

The sustainability message by Livia Firth was a returning theme throughout the 3-day event. However, presentations by various speakers such as Eco-Age Chief Brand Officer Harriet Vocking and industry expert Dr. Paul Swan showed that the sustainability discussion is maturing. While the topic used to circle around Life Cycle Assessment (LCA) and animal welfare, the scope is broadening. Aspects such as traceability and transparency, working conditions, economic prosperity, circular economy, community, and social wellbeing were aspects discussed during the event as well.

Hugo Boss representative Heinz Zeller explained why transparency is a top priority for the fashion industry. Clothing manufacturers and retailers want to be in a position where they know exactly where and how each garment item has been produced.
The solution to a traceable supply chain favoured by the industry is blockchain, a technology already explored by various industry players such as AWEX and BKB. However, Mr. Zeller pointed out that a successful Blockchain solution can only be a global one which is jointly being developed by all supply chain partners involved, similar to the world wide web.

Another forum for interesting debate was the Market Intelligence Session organised by Chris Wilcox. Don MacDonald reported about the dreadful drought in Australia and showed the latest AWI video about the situation (click here to view). CEO Joe Farren of British Wool gave insights into the British coarse wool market and CEO Giovanni Schneider of the Schneider Group provided insights into the Italian wool manufacturing and fashion industry (watch Giovanni Schneider’s presentation here). A podium discussion with Chinese wool manufacturers and delegates in the audience followed the presentations. The debate about current high wool prices for fine wools showcased general support and understanding for wool growers and an expectancy for prices to even increase further.

The last Congress was hosted by the Benetton Group at their headquarters in Treviso. Here the main focus was on the topic of wool’s health and wellness benefits. NASA researcher Ms Orndorff reported about her search for finding the best fibre for astronauts to wear during their extended travel to Mars and beyond. After comparing a wide variety of fibres wool came out as a clear winner when it comes to comfort, odour and static.

The IWTO Congress ended with a visit to the Marzotto Group headquarters in Valdagno. Delegates were able to gain insights into one of the biggest users of fine wool and discover a long history of corporate social responsibility by one of the global leaders in the production of high-quality fabrics for men’s and women’s clothing.

Overall the Congress gave a good overview on current challenges and opportunities as well as the latest research results the industry is advancing on. The next IWTO Congress will be held on 18-20 May 2020 in Tongxiang, China.

FREMANTLE MARKET REPORT

COMMENT

Fleece slightly dearer by 5-10 cents, skirtings and open tops firm.

FLEECE

Fleece prices remained very firm to slightly dearer today with again good demand for better spec wools.

Fleece had a passed-in rate of 13.3% today.

SKIRTINGS

Skirtings were generally firm today.

OPEN TOP

There was generally little change in open tops today.

 

EASTERN AUSTRALIAN MARKET REPORT

Market remains firm.

COMMENT

Good general competition. Buying activity appears more confident at this level.

FLEECE

Generally firm on average.

The few better lots were again harder to buy while the inferior lots are still a little irregular due to volume. Buyers all averaging towards better specification find it hard to place too many with poor specification.

SKIRTINGS

Better fine micron lines in small quantity par to 1% dearer. Others fully firm.

OPEN TOP

Generally unchanged in a limited selection.

NEW ZEALAND MARKET REPORT

Summary

Only a few bales of fine wools on offer

Comment

Once again there was only a small number of bales of fine wool on offer at the sale held in Christchurch this week as we wait for the new season wools to come onto the market.  Too few to quote.

FUHRMANN NZ MARKET REPORT

Summary

Market firm tending dearer

Comment

North and South Island centres selling today with 17,000 bales on offer.  The selection consisted of 45 percent good to average style fleeces 34.0 to 39.0 micron, 20 percent lambs good colour, 29.0 to 31.5 micron, 3 inch to 3 to 5 inches, 20% good style second shear, 35.0 to 39.0 micron, bulk 75/100mm. Also on offer were 10 percent associated oddments and 5 percent miscellaneous types.  China main with support from the United Kingdom and Australasian carpet mills.

Fleece

Good style 32.0 to 34.5 micron firm.

Good style 35.0 to 39.0 micron 3.5% dearer.

Average style 33.0 to 39.0 micron firm.

Second Shears

All descriptions 1% dearer.

Lambs

First lambs very firm.

Oddments

Average colour 2% dearer.

Poor colour buyers favour.

Passings

15% Passed In.

Next Auction

South Island only offering 5,500 bales on 16th May.

Fleece Summary

– Good style 32.0-34.5
Variation %:  Firm

Good style 35.0-39.0
Variation %:  3.5

– Average style 33.0-39.0
Variation %:  Firm

Second Shears Summary

All descriptions
Variation %: 1

Lambs

– First Lambs
Variation %: Very firm

Oddments

Average colour
Variation %: 2

↓ Poor colour
Variation %: Buyers favour