NEW ZEALAND MARKET REPORT

Summary

New Zealand market eased in line with the turbulence seen in Australia over the past fortnight.

Comment

While good lots continued to attract strong competition in yesterday’s sale, wools 20.5 micron and finer saw significant falls reflecting the market situation in Australia.  Skirtings were most affected and high VM lots were heavily discounted.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Another extraordinary market reaction this week. While the new level of price is concerning enough, the direction it’s taken to arrive at this point has been extreme. Surely the appetite for wool has not changed that much in such a short period. Confusion is wide spread and confidence within the market is low and not until we get to a level that extracts more widespread interest will we see a reaction. Reports are that there is business but while the market falls, the next level is always lower. How long can this last? All markets react strongly after up and down corrections and we expect this to be no different. But when and from what level? Industry participants with some necessity for wool will be monitoring the next move very carefully.

Crossbred types appear in favour and only minor changes were noted from 26.0 / 32.0 micron.

AWEX Eastern Indicator compared with 23/08/2019

Eastern Indicator

Close: 1375

Change in % -8.15

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

Authentico Index Values

15 Micron

Close: 2431

Change in %: +0.45

16 Micron

Close: 2118

Change in %: -1.44

17 Micron

Close: 2007

Change in %: -3.97

18 Micron

Close: 1932

Change in %: -4.92

19 Micron

Close: 1804

Change in %: -5.85

Authentico Indicator

Close: 2029

Change in %: -3.38

Forecast

We’ll try to focus on the positives from a negative sale week. 15.0/16.0 micron were much less affected than the broader Chinese qualities. This was a superfine sale in Sydney and the result was positive. Of particular note was the market for non mulesed types. Our own Authentico Index was only 3.38% down for the week compared to an AWEX EMI which fell 8.15%. Our index is influenced by the performance of the finer micron (15.0 and 16.0) types that are important to our clients. The AWEX EMI includes wool down to 16.5 micron average only. We hope that this new Indicator and our Authentico indexes are of value to the industry.

Auction offering – current week

Selling Centres for week 09

Market          Sale          Offered             Sold       Passed In

North                    S 09                      6951                         4801                 30.9%

South                   M 09                     11453                        8200                28.4%

West                     F 09                       6891                         3854                44.1%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 10                        W-T                           8885

South                      M 10                       W-T                           15718

West                        F 10                        W                               4458

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece 60-80 cents cheaper, skirtings 70-80 cents cheaper, open tops 40-50 cents cheaper.

FLEECE

Prices were cheaper again across the boards and very high passed-in rates make quoting hard today. Prices were generally 60-80 cents cheaper, with some selected 19.5u and finer lots only 30-40 cents cheaper.

Fleece had a passed-in rate of 59.0%

SKIRTINGS

Skirtings were generally 60-80 cents cheaper.

OPEN TOP

Open tops were generally 40-50 cents cheaper.

 

 

FUHRMANN NZ MARKET REPORT

Summary

Coarser wools firm, finer wools cheaper.

Comment

South Island only selling today with 10,000 bales on offer.  The selection consisted of 25% good style/colour fleece, 35.0 to 40.0 micron, 25% good/average style fleece, 35.0 to 40.0 micron, 18% good style second shear 31.0 to 38.0 micron, bulk 75mm, 10% associated oddments, 5% merino fleece 16.0 to 21.5 micron, 10% halfbred fleece 25.0 to 31.0 micron and 7% miscellaneous types.  Widespread competition with most sectors operating.

Fleece Wools

Good Style 2.5% cheaper.

Average style very firm.

Merino fleece 16.0 to 21.5 micron generally 10% cheaper.

Halfbred fleece 22.0 to 24.5 micron 5% cheaper.

25.0 to 31.0 micron 10% cheaper.

Second Shears

Firm.

Oddments

Clothing oddments 5% cheaper

Combing oddments 10% dearer.

Passings

30% Passed In.

Next Auction

North Island only selling with 6,000 bales on offer 5th September.

Fleece Wools Summary

Good Style
Variation %: 2.5

Average Style
Variation %: Very firm

Merino Fleece

Variation %: 10

Halfbred Fleece

Variation %: 5-10

Second Shears Summary

– All descriptions
Variation %: Firm

Oddments

Clothing Oddments
Variation %: 5

Combing Oddments
Variation %: 10

 

EASTERN AUSTRALIAN MARKET REPORT

Market down. Uncertainty continues.

COMMENT

Only 6,000 bales between Sydney and Melbourne were eventually sold today as most growers opt out of selling in this confusion.

FLEECE

No doubt non mulesed (NM) types were least affected across all micron categories. General market is difficult to quote with such high passed in and withdrawn rates.

18.0 micron and finer generally 2% easier

18.5 / 19.5 micron 3% easier

20.0 / 21.5 micron 3 to 4% easier

 

SKIRTINGS

4 to 5% easier

OPEN TOP

Nominally 2 to 3% easier

FREMANTLE MARKET REPORT

COMMENT

Fleece 60-100 cents cheaper, skirtings 120 cents cheaper, open tops 100-150 cents cheaper.

FLEECE

The market fell heavily again today, with most types generally 70-100 cents cheaper. The broader end was the most affected, while some selected very good spec 18.5u and finer fleece traded at similar levels to last sale.

Fleece had a passed-in rate of 38.8%

SKIRTINGS

Skirtings were generally 120-150 cents cheaper.

OPEN TOP

Open tops were generally 100-150 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market easier with ongoing economic trade and consumer confidence dictating the uncertainty.

COMMENT

Large passed in rate added to grower withdrawal rates prior to sale. Just 7,000 bales were sold in Sydney and Melbourne combined.

FLEECE

Best 17.0 / 18.5 micron 1% easier with selected spinner style unchanged.

Good to average lots 18.5 micron and finer 1 to 2% easier

All 19.0 / 21.0 micron 3% easier

SKIRTINGS

Better lots 2% easier, average lots 3 to 4% easier.

OPEN TOP

Unable to quote

SILK MARKET REPORT

July – August 2019

 

CHINA

Due to smaller production on new cocoons, which is 30/40% less than last year, the price of raw silk increased 30% from mid July. Good materials are limited both on mulberry and tussah. As the silk quilts business rebound, the prices of kibiso and tussah cocoons increased 20% even though the market of silk tops is still quiet.

CASHMERE MARKET REPORT

July – August 2019

 

CHINA

After a crazy collecting period during the last 2 to 3 months, the traders now have enough stock. At the same time, demand is still not good. The price of cashmere is 10% less than July 2018. Compared with prices in June, the situation is basically unchanged. For finer cashmere types, the price is still on the high level because of limited availability. The prices for low and medium qualities should come down shortly. Recently the RMB has been getting weaker, due to the trade war between China and the US. This is offsetting some increase in prices.

MONGOLIA

Mongolia is still the second-largest producer of cashmere in the world with 10.000 tons of greasy cashmere.
From 2015 to 2019 the cashmere production was constant and almost 90% of whole cashmere production is exported to foreign countries (89% exported to China and 11% to European countries).
Main importers in the EU are Italy, the UK, Germany. However, globally the main players are always Chinese buyers.
In the first 7 months of 2019, almost 75% of cashmere was exported. Compared to July 2018 the exported quantity of cashmere has increased by 5.2%.
The cashmere price has been stable over the first five months of the season and now it is expected to follow the EU/Chinese market trend for the next months.

IRAN

News of a poor international market and low prices of Mongolian stock in Europe has reached Iran and has at least halted the price hike. Although no Chinese buyers are present in the market now, the market is still stable and no trader is willing to reduce its prices and sell with a loss, hoping that prices will strengthen again after the European summer has ended.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Some interest late last week, albeit below the closing level, was enough to stimulate more widespread buyer support at the new level. It was a significantly better market tone in the sale room. Prices did however ease further as buyers search for a level in which they can sell and global market and political uncertainties ensure a lack of overall confidence. Still, it was a much better result than the past two weeks.

AWEX Eastern Indicator compared with 16/08/2019

Eastern Indicator

Close: 1497

Change in % -1.06%

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

Authentico Index Values

15 Micron

Close: 2420

Change in %: -0.08

16 Micron

Close: 2149

Change in %: -2.8

17 Micron

Close: 2090

Change in %: -2.9

18 Micron

Close: 2032

Change in %: -2.96

19 Micron

Close: 1916

Change in %: -4.49

Authentico Indicator

Close: 2100

Change in %: -2.28

Forecast

We have today published for the first time our new Authentico Index values and the Authentico Indicator. We’re very pleased to provide the first index values based on a sustainable quality scheme. We’d like to thank our committed grower supporters for joining the Authentico program and we’re positive that this initiative will give our clients and our grower partners some meaningful values and an indicator that matches market and consumer expectations.

Auction offering – current week

Selling Centres for week 08

Market          Sale          Offered             Sold       Passed In

North                    S 08                      9430                        8096                 14.1%

South                   M 08                     17062                       14120                 17.2%

West                     F 08                       no sale

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 09                        W-T                           8158

South                      M 09                       W-T                           14778

West                        F 09                        W-T                           10110

 

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