EASTERN AUSTRALIAN MARKET REPORT

Market dearer but in a much more sensible and orderly fashion.

COMMENT

Chinese inferior qualities most affected.

FLEECE

Best 16.5 micron and finer 1% dearer.

Best 17.0 / 19.5 micron fully firm.

Good / average specification-

18.5 micron and finer up to 1% dearer, finest most affected.

19.0 / 21.5 micron 1.5% dearer.

Inferior / tender types –

16.5 / 18.5 micron 3 to 4% dearer.

19.0 / 20.5 micron 1% dearer.

SKIRTINGS

18.0 micron and finer 0.5% dearer.

18.5 / 19.5 micron 1% dearer.

OPEN TOP

1% dearer.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The soft lead from Fremantle last Thursday ensured the opening of this week’s market was negative. The variation in price from week to week and day to day is compounding the confusion and subsequent difficulty in managing all buying and selling decisions. The level of price is not necessarily under question, it’s the variation and the uncertainty that this movement is creating. This is impacting on the general trading environment from farm through the entire supply chain. It’s a global market and with prices easing in South Africa to levels well below our close on Wednesday, this flowed through to the Australian market on Thursday.

AWEX Eastern Indicator compared with 27/09/2019

Eastern Indicator

Close: 1511

Change in % -6.09

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

Authentico Index Values

15 Micron

Close: 2419

Change in %: -3.74

16 Micron

Close: 2198

Change in %: -5.98

17 Micron

Close: 2082

Change in %: -4.94

18 Micron

Close: 2006

Change in %: -3.04

19 Micron

Close: 1935

Change in %: -3.44

Authentico Indicator

Close: 2101

Change in %: -4.28

Forecast

Some would be critical of the spike in the volume of wool offered nationally this week even if it was just 37,000 bales offered across all three centres. Not large by any measure but still 37% or 10,000 more bales than last week. AWEX auction data to week 14 indicates there has been 27.5% fewer bales of first hand grower wool offered this season compared to last year. AWTA test data to end September indicated a fall in tested volume of 14% compared to end September 2018 and yet the Australian Wool Production Forecast Committee met in August and predicted a fall of just 5% for the full year. Some widely variable figures.

We would have preferred a smaller sale this week once we understood the market was to open lower but brokers lot the wool for sale and provide volumes in the middle of the week prior, when the market was positive. Also, we can’t decline the grower the opportunity to offer their wool for sale and the auction system is at least very transparent in terms of what is available. Some growers are in the middle of the worst drought on record, are desperate for cash and prices are still considered acceptable if only the wild fluctuations would settle. We must understand growers have the right to choose when to sell their wool, like buyers have the right to choose if they buy. It’s just a very unfortunate and difficult period we need to work through compounded by global economic uncertainty.

Auction offering – current week

Selling Centres for week 14

Market          Sale          Offered             Sold       Passed In

North                    S 14                       9512                          6992                 26.5%

South                   M 14                      16737                        11010                 34.2%

West                     F 14                        7299                          4321                 40.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 15                        W-T                            8341

South                      M 15                       W-T                           18085

West                        F 15                        W-T                            7748

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 60-70 cents cheaper, skirtings 50 cent cheaper, open tops 15 cents cheaper.

FLEECE

Fleece prices fell again today by around 60-70 cents. The market was irregular with some better style fleece only 20-30 cents cheaper, while other average to poorer style fleece was up to 80 cents cheaper.

Fleece had a very high passed-in rate of 59.5%

SKIRTINGS

Skirtings were generally 50 cents cheaper.

OPEN TOP

Open tops were generally 15 cents cheaper on a limited selection.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market cheaper. Chinese activity very quiet resulting in 55% of the fleece wool being passed in and just 3300 bales of fleece sold between the Sydney and Melbourne market.

COMMENT

Better fine wool much less affected. It was the typical Chinese types that were neglected today.

FLEECE

Italian types in a good offering 15.5 to 18.5 micron fully firm.

Good specification –

16.5 micron and finer unchanged

17.0 / 19.0 micron 2% easier

19.5 / 21.0 micron 3% easier

Inferior and tender wool 16.5 / 18.0 micron 3 to 4% easier.

 

SKIRTINGS

2% easier.

OPEN TOP

2% easier.

FUHRMANN NZ MARKET REPORT

Summary

Market eases.

Comment

North Island only selling today with 8,000 bales on offer.  The selection consisted of 60% good colour crossbred second shear 32 to 38 micron average 3″, 20% hogget fleece, 3/5″, 33 to 36 micron, 15% associated oddments and 5% miscellaneous types.  Widespread competition with most sectors operating.

Fleece Wools

Hogget fleece, 32-33 micron 2.5% cheaper.

Second Shears

All microns buyers favour.

Oddments

Clothing oddments 3% cheaper.

Passings

13% Passed In.

Next Auction

South Island only selling with 8,300 bales on offer 10th October.

Fleece Wools Summary

Hogget Fleece 32-33 mic
Variation %: 2.5

Second Shears Summary

All microns
Variation %: Buyers favour

Oddments

Clothing oddments
Variation %: 3

 

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 50 cents cheaper, skirtings 50 cent cheaper, open tops 25 cents cheaper.

FLEECE

Fleece prices opened 20-30 cents cheaper today and continued to drift during the sale to finish around 50-60 cents cheaper.  Better specification lots and the broad end was less affected with falls in the 30-40 cents range.

Fleece had a passed-in rate of 37.5%.

SKIRTINGS

Skirtings were generally 50 cents cheaper.

OPEN TOP

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

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market around 1% below the level of Fremantle 26th September.

COMMENT

Good competition but some grower resistance to sell in a softer market. Prices settled a little lower than the last Fremantle sale.

FLEECE

Compared to Sydney and Melbourne – better specification lot’s and NM clips least affected.

18.5 micron and finer 3 to 5% easier.

19.0 / 21.0 micron 3% easier

SKIRTINGS

3% easier compared to Sydney and Melbourne quotes.

OPEN TOP

2 to 3% easier.