AUSTRALIAN WEEKLY MARKET REPORT

Comment

A small national volume and mixed reports coming from China added to more confusion leading into the sale. Prices were expected to open strongly and they did. Typically though, with supply as limited as it is, the market is reacting with more volatility than we would have expected in the past. This eventually added more confusion and prices settled in Fremantle on Thursday. The Fremantle and Melbourne auction centres don’t have the volume of typical Italian weaver types and we’re finding that these types are not moving with such volatility. Interest and demand for wool types that meet Authentico standards are attracting more consistent competition and these types were least affected. Of particular note was the best 15.5/16.0 micron range of Authentico types. Those with good style and specification attracted strong competition from a range of Italian interests.

AWEX Eastern Indicator compared with 20/09/2019

Eastern Indicator

Close: 1609

Change in % +4.34

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

Authentico Index Values

15 Micron

Close: 2513

Change in %: +1.17

16 Micron

Close: 2338

Change in %: +4.42

17 Micron

Close: 2184

Change in %: +2.13

18 Micron

Close: 2069

Change in %: +1.27

19 Micron

Close: 2004

Change in %: +3.73

Authentico Indicator

Close: 2195

Change in %: +2.38

Forecast

With prices in Fremantle settling below the close of Sydney and Melbourne and an increase to 40,000 bales next week, we could expect a softer opening tone. Growers will likely exercise their option to reserve their wool at a minimum price and if bidding doesn’t get to those levels, they are likely to keep it for another week. This is what they’ve done quite well in recent weeks. Our policy to maintain a steady and sensible approach to buying and selling will continue. None of us are able to accurately predict the top or bottom of this market with such volatility.

Auction offering – current week

Selling Centres for week 13

Market          Sale          Offered             Sold       Passed In

North                    S 13                       7184                          6983                  2.8%

South                   M 13                      13525                        12979                 4.0%

West                     F 13                        6749                          5422                 19.7%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 14                        W-T                           10464

South                      M 14                       W-T                           21758

West                        F 14                        W-T                            8777

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 30-70 cents cheaper, skirtings 10 cent cheaper, open tops 50 cents cheaper.

FLEECE

Fleece prices were 20-30 cents cheaper when auctions opened today and continued to drift throughout the sale. The fine end was most affected, seeing falls of up to 70 cents. The broad end was less affected and falls stayed in the 30-40 cents range. Best style topmaking fleece received good demand, with some selected lots selling at levels similar to yesterday’s sale.

Fleece had a passed-in rate of 36.1%.

SKIRTINGS

Skirtings were generally 10 cents cheaper.

OPEN TOP

Open tops were generally 25-50 cents cheaper on a limited selection.

 

 

EASTERN AUSTRALIAN MARKET REPORT

 

COMMENT

Market settles today with solid support from China.

FLEECE

Best Style 18 micron and finer firm .

18.5 micron and broader 1-2% dearer.

Ave/Inferior style 1-2% easier.

 

SKIRTINGS

18.5 micron and finer 1-2% dearer.

19.0 micron and broader 1-2% dearer.

OPEN TOP

1% dearer in limited offering.

NEW ZEALAND MARKET REPORT

Summary

New Zealand market continues to rise.

Comment

The New Zealand fine wool market rallied in line with Australia.  Generally large increases were seen across the board from 16 micron through to 23.0 micron .  There have been 4 days selling in Australia since New Zealand last sold fine wools and the dramatic increases reflected the market movements seen in the Australian market ranging from between 2.5 and 8%.  The biggest increase was seen 21.0 to 23.0 micron bracket at around 7 to 8% There was widespread competition across the board and across the catalogues.

FUHRMANN NZ MARKET REPORT

Summary

Market strengthens across the board.

Comment

South Island only selling today with 10,000 bales on offer.  The selection consisted of 50% good/average style fleece and hoggets 32-38 micron, 10% very good style halfbred fleece 23-30 micron, 8% super style merino fleece 17-22 micron, 10% crossbred super style second shear/hogget shear 32-38 micron.  Also available werer 10% associated oddments and 12% miscellaneous types.  Widespread competition with most sectors operating.

Fleece Wools

Good style crossbred fleece firm.

Average/poor style crossbred fleece 3% dearer.

Finer microns

17.0-21.0 micron 2.5% dearer.

21.5-23.5 micron 6% dearer.

24.0-30.0 micron 3.5% dearer.

Second Shears

Super/Good style crossbred shears generally 5% dearer.

Oddments

All descriptions sellers favour.

Passings

10% Passed In.

Next Auction

North Island only selling with 8,000 bales on offer 3rd October.

Fleece Wools Summary

Good Style
Variation %: Firm

Average/Poor Style
Variation %: 3

Average/Poor Style
Variation %: 3

17.0-21.0 micron
Variation %: 2.5

21.5-23.5 micron
Variation %: 6

24.0-30.0 micron
Variation %: 3.5

Second Shears Summary

Super/Good Style
Variation %: 5

Oddments

All descriptions
Variation %: Sellers favour

 

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 100 cents dearer, skirtings 60-70 cent dearer, open tops 50-100 cents dearer.

FLEECE

Fleece prices rose 100 cents across the board today. Prices remained firm throughout the sale, with all types affected.

Fleece had a passed-in rate of 8.2%.

SKIRTINGS

Skirtings were around 60-70 cents dearer.

OPEN TOP

Open tops were generally 50-100 cents dearer on a limited selection.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer.

COMMENT

Market moves into positive territory after Nanjing Wool Conference.

FLEECE

18 micron and finer 2-3% dearer.

18.5 micron and broader 4-5% dearer.

 

SKIRTINGS

18.5 micron and finer 4-5% dearer.

19.0 micron and broader 2-3% dearer.

OPEN TOP

2-3% dearer.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Finally, a bit of stability in the market. Prices settled on Wednesday a little above the close in Fremantle from the previous week. That basis was the most recent to go on and the one most chose to compare against considering the extreme volatility of last week. With many local traders in China for the Nanjing Wool Conference, it was pleasing to see a small improvement from that basis on Thursday. All in all it must be considered a very positive result.

AWEX Eastern Indicator compared with 13/09/2019

Eastern Indicator

Close: 1542

Change in % +0.46

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

Authentico Index Values

15 Micron

Close: 2484

Change in %: +1.72

16 Micron

Close: 2239

Change in %: +0.49

17 Micron

Close: 2139

Change in %: +2.59

18 Micron

Close: 2043

Change in %: +0.89

19 Micron

Close: 1932

Change in %: -0.51

Authentico Indicator

Close: 2144

Change in %: +1.28

Forecast

Sale volumes remain small and while we acknowledged some wool was passed in and withdrawn in recent weeks, it’s not coming back onto the market in any great numbers. Some were of the opinion that this factor might be a negative for the market but as yet it’s not impacting on sale volumes nor the market. There will be less than 30,000 bales offered for sale next week. The relative stability around these levels is encouraging more interest from our clients. The market from October is generally quite positive historically and we see no reason for this not to continue this season.

Auction offering – current week

Selling Centres for week 12

Market          Sale          Offered             Sold       Passed In

North                    S 12                       8668                          7973                  8.0%

South                   M 12                      15027                         13233                11.9%

West                     F 12                        6440                          5801                  9.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 13                        W-T                            7559

South                      M 13                       W-T                           14904

West                        F 13                        W-T                            6827

 

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

FUHRMANN NZ MARKET REPORT

Summary

Good style slightly easier, average style very firm.

Comment

North Island only selling today with 6,200 bales on offer.  The selection consisted of mainly good/average style fleece and shears 35.0 to 40.0 micron, some crossbred hoggets good style, 32.0 to 35.0 micron and a small selection of associated oddments and miscellaneous types.  Limited competition with pressure mostly from Europe and the United Kingdom.

Fleece Wools

Good style crossbred fleece buyers favour.

Average style crossbred fleece very firm.

Second Shears

Good style buyers favour.

Average style very firm.

Oddments

All descriptions up to 5% dearer.

Passings

21% Passed In.

Next Auction

South Island only selling with 11,200 bales on offer 26th September.

Fleece Wools Summary

 Good Style
Variation %: Buyers favour

Average Style
Variation %: Very Firm

Second Shears Summary

 Good Style
Variation %: Buyers favour

Average Style
Variation %: Very Firm

Oddments

All descriptions
Variation %: 5

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer.

COMMENT

All descriptions closed on average around 1% dearer.

FLEECE

15.0 to 16.0 micron came under strong pressure, especially better non mulesed lots and closed 2% dearer.

16.5 / 17.5 micron 1 to 2% dearer.

18.0 / 19.5 micron up to 1% dearer.

20.0 / 21.5 micron 1 to 2% dearer.

SKIRTINGS

17.5 micron and finer 1 to 2% dearer.

18.0 / 19.0 micron 1% dearer.

OPEN TOP

Nominally 1% dearer.