FUHRMANN NZ MARKET REPORT

Summary

Good style dearer, average style cheaper.

Comment

North Island only selling today with 7,200 bales on offer.  The selection consisted of 10% good/average colour fleece, 35.0 to 40.0 micron, 60% good style second shear 31.0 to 38.0 micron, bulk 75mm, 15% associated oddments and 15% miscellaneous types.  Euope and United Kingdom main competition with support from China, India and Australasian carpet mills.

Fleece Wools

Good Style 2% dearer.

Average style 2% cheaper.

Second Shears

Good style 2% dearer.

Average style 2% cheaper.

Oddments

All descriptions buyers favour.

Passings

12% Passed In.

Next Auction

South Island only selling with 10,500 bales on offer 29th August.

Fleece Wools Summary

Good Style
Variation %: 2

Average Style
Variation %: 2

Second Shears Summary

Good Style
Variation %: 2

Average Style
Variation %: 2

Oddments

All descriptions
Variation %: Buyers favour

 

EASTERN AUSTRALIAN MARKET REPORT

Market generally a little easier, best least affected.

COMMENT

Large passed in and withdrawn rate as growers utilise their option to hold wool pending a better market.

FLEECE

All 16.0 and 16.5 micron fully firm

Best 17.0 / 19.0 micron fully firm

All others 17.0 / 19.0 micron 1% easier

19.5 / 21.0 micron slightly easier, par to 1%.

SKIRTINGS

All better lots fully firm, others 1% easier.

OPEN TOP

Generally unchanged.

EASTERN AUSTRALIAN MARKET REPORT

Market stabilises. More buyer confidence at this level.

COMMENT

A wide variety of buyers keen to accumulate wool at this level. A positive sign.

FLEECE

16.0 micron and finer fully firm.

16.5 / 21.5 micron generally 1% easier but well maintained at that level.

SKIRTINGS

16.0 / 16.5 micron 1% dearer

17.0 / 17.5 micron fully firm

18.0/19.5 micron 1% easier

OPEN TOP

Nominally firm.

Introducing the Authentico Index Values and Authentico Indicator

With the opening of the new wool season 2019/20, the Schneider Group is launching its new Index Values. The new so-called Authentico Index Values and Authentico Indicator will better reflect the current market demands and supply chain requirements.

At the Schneider Group, we decided to review the Schneider Market Indicator in order to provide market information that is reflective of our business which is constantly evolving.

The Authentico Index values and the Authentico Indicator consider only wool from farms who no longer mules and those who meet our Authentico Quality Scheme standards. The average indicators are derived from good performing fleece wool but include not only the very best lots but also a range of good performing top-making types that reflect our full range of client requirements. These new values and indicator are different from the previous Schneider index’s which included wool types that are no longer relevant to our client requirements and weren’t specific with regards to the welfare, sustainability and quality.

Like any index, the Authentico indicators are derived from a pool of types and do not reflect any specific wool type.

We have changed to this new system because we now have sufficient grower supply and we are extremely pleased with the level of interest in our quality and traceability scheme. These new indicators are a result of this high level of interest in Authentico and the types included in the indexes are reflective of the demand from our clients.

We are pleased to launch the first range of indexes and an indicator which are based on the best land, environmental, animal and human resource practices with a strong focus on wool quality.

The new Authentico Index Values and Authentico Indicator will be published for the first time within the Australian Weekly Market Report on Thursday 22nd August 2019 and will be also published here.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Further instability on global economic issues has eroded confidence from the wool market that has until now recorded one of the more positive periods in the last few years in our history. Since the peak of the EMI exactly one year ago (16/08/18), the benchmark indicator has fallen 28.5%. In USD terms the peak was in June 2018 and it’s now 33.6% lower. The fall in the EMI this week alone was just under 10%. In comparison our pool of non mulesed types indicates that these wools were again much less affected and closed around 2.9% cheaper on average. 15.0/16.0 micron and the better 17.0/18.5 types were again well supported by a different bench of buyers.

AWEX Eastern Indicator compared with 09/08/2019

Eastern Indicator

Close: 1513

Change in % -9.7%

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

Schneider Indicators

The Schneider Indicators are currently being reviewed to provide index values that will better reflect our evolving business. Details and launch in coming weeks. Our apologies to those who rely on these values for market information.

15 Micron

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16 Micron

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17 Micron

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18 Micron

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19 Micron

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Forecast

A fall of this magnitude is significant and must raise further confusion amongst our customers. We can’t underestimate the level of pessimism coming from the Chinese market. This will however, create opportunities for others and considering the correction in price is as great since the peak as we mentioned earlier in this report, this new level of price will encourage some serious considerations. Little has changed fundamentally. We remain very confident for wool as a textile fibre and supply will continue to fall in Australia with the impact of the drought continuing to drive production downwards. Superfine wool clips are coming in earlier than usual and this will impact on supply later this calendar year.

Auction offering – current week

Selling Centres for week 07

Market          Sale          Offered             Sold       Passed In

North                    S 07                      13052                       8548                34.5%

South                   M 07                      15442                       10797              30.1%

West                     F 07                        6929                         3698              46.6%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 08                        T-W                           11194

South                      M 08                       T-W                           22502

West                        F 08                        no sale

 

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

EASTERN AUSTRALIAN MARKET REPORT

Fine wool firm. Broader merino types easier.

COMMENT

A clear market distinction for non mulesed wool with medium merino types (18.5/20.5) NM up to 5/10% above the general market level depending on quality.

FLEECE

Best 18.5 micron and finer tending slightly dearer with good competition on best specification at the new basis.

Good specification 16.0 / 18.5 firm with keenest interest in the finer end.

All 19.0 /19.5 micron 2% easier and 20.0 / 21.5 micron 3% easier

Tenders and high mid break wool just 1% easier.

SKIRTINGS

1% easier

OPEN TOP

1% easier

NEW ZEALAND MARKET REPORT

Summary

Market softens.

Comment

The market in Christchurch today reflected the downward pressure seen in Australia yesterday.  While there were only a few lots of merino on offer they eased significantly although were not affected as much as the mid micron wools which have seen a large drop in value.

FUHRMANN NZ MARKET REPORT

Summary

Crossbreds generally firm, but average fleece tending easier.  Halfbreds cheaper.

Comment

South Island only selling today with 10,000 bales on offer.  The selection consisted of 30% good colour fleece, 35.0 to 40.0 micron, 20% average colour fleece 35.0 to 40.0 micron, 20% very good style second shear 33.0 to 38.0 micron, bulk 75mm, 10% associated oddments, 10% halfbred fleece, 25.0 to 30.0 micron and 10% miscellaneous types.  Limited competition with China, Europe main and support from the United Kingdom, India and Australasian carpet mills.

Fleece Wools

Good Style firm.

Average style tending buyers favour.

Halfbred Fleece generally 10% cheaper

Second Shears

Good style firm.

Oddments

All descriptions firm.

Passings

33% Passed In.

Next Auction

North Island only selling with 7,200 bales on offer 22nd August.

Fleece Wools Summary

Good Style
Variation %: Firm

Average Style
Variation %: Buyers Favour

Halfbred Fleece
Variation %: 10

Second Shears Summary

Good Style
Variation %: Firm

Oddments

All descriptions
Variation %: Firm

 

EASTERN AUSTRALIAN MARKET REPORT

Another major market correction. A general lack of buyer confidence with little interest coming from overseas clients during these uncertain times.

COMMENT

One third of the offering passed in. All prices down, some better types least affected, especially non mulesed. No doubt at some point in time there will be an over reaction and prices will recover, but confidence must first return.

FLEECE

18.5 micron and finer 3% easier

19.0 / 21.0 micron 5% easier

SKIRTINGS

Best lots 3% easier, others 5% easier.

OPEN TOP

Generally 3 to 5% easier

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The global financial and trade situation is causing enormous uncertainty across all markets and wool has not been immune from this global economic story. Our reliance on China is well known. Chinese trade activity has certainly been affected and the major wool buyers were notably absent this week. There did seem to be a little more interest late in the sale Thursday but this didn’t ease the negative sentiment that had dominated the opening sale. 16.0 micron was least affected and even closed fully firm yesterday. It was the standard Chinese types 19.0 to 21.5 micron that lacked the usual competition. 29% of the total national offering was passed in.

AWEX Eastern Indicator compared with 12/07/2019

Eastern Indicator

Close: 1676

Change in % -4.45%

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

Schneider Indicators

The Schneider Indicators are currently being reviewed to provide index values that will better reflect our evolving business. Details and launch in coming weeks. Our apologies to those who rely on these values for market information.

15 Micron

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17 Micron

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18 Micron

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19 Micron

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Forecast

Very few are able to comment on the non mulesed market like we can. G Schneider Australia tends to dominate the offering of NM certified wool from 18.5 to 20.5 micron. This week our prices for NM wool around 19.0 /20.0 micron were only 2% down on the previous sale in July. This compares with an AWEX MPG value for 19.0 micron which was closer to 6% down. Clearly NM wool is selling in a different market and attracting a wider range of buyer interest who are influenced by longer term delivery and supply chain relationships.

Auction offering – current week

Selling Centres for week 07

Market          Sale          Offered             Sold       Passed In

North                    S 07                      13059                       10490              19.7%

South                   M 07                      21125                        15726               25.6%

West                     F 07                        7359                          3425                53.5%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 08                        W-T                          13984

South                      M 08                       W-T                          21231

West                        F 08                        W-T                           8388

 

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