AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market was a little easier over both selling days but 33,000 bales to the value of $54,000,000 sold to the trade in the week. Not a bad result in a generally negative market tone. We remain convinced that there is demand for wool, albeit a little cautious. Our fine wool Authentico index values also report a more positive market for NM/CM wool in what was a slightly better selection. There is no doubt that the better superfine clips that are either NM or CM are attracting a wider range of competition and these wool’s sold well and tended dearer. The Authentico index values for 15.0, 16.0 and 17.0 all improved a little. 18.0 was unchanged and 19.0 was easier.

AWEX Eastern Indicator compared with 22/11/2019

Eastern Indicator

Close: 1530

Change in % -1.61

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

Authentico Index Values

15 Micron

Close: 2475

Change in %: +1.64

16 Micron

Close: 2314

Change in %: +1.71

17 Micron

Close: 2143

Change in %: +0.42

18 Micron

Close: 2025

Change in %: +0.05

19 Micron

Close: 1898

Change in %: -1.71

Authentico Indicator

Close: 2151

Change in %: +0.56

Forecast

Just three weeks remain before the Christmas recess and it appears that the market will continue within this narrower trading range until the end of December.

It’s important to note that the strength in our index values came from the 15.0 and 16.0 range and neither of these micron ranges are included in the EMI.

Auction offering – current week

Selling Centres for week 22

Market          Sale          Offered             Sold       Passed In

North                      S 22                     10237                       8938                  12.7%

South                     M 22                     20315                      17631                  13.2%

West                       F 22                       7275                         5895                 19.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 23                       W-T                           10163

South                      M 23                      W-T                           23158

West                        F 23                       W-T                            7953

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 10-15 cents cheaper, skirtings firm, open tops unchanged.

FLEECE

Fleece prices were generally 10-15 cents cheaper today, but the market was irregular and some good spec fleece sold at similar levels to yesterday.
A few growers with very high reserves helped push the passed-in rate for fleece out to 33.5%.

SKIRTINGS

Skirtings were generally firm.

OPEN TOP

Open tops saw very little change in prices today.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Best Fine wool firm and well supported, others easier.

COMMENT

Best style/strength well supported, with lower styles struggling to maintain.

FLEECE

16.5 micron and finer fully firm

17.0 / 17.5 micron best unchanged, inferior 1% easier

18.0 / 18.5 micron best to good types in buyers favour, inferior 1% easier

19.0 / 21.5 micron up to 1% easier with better length and strength least affected.

SKIRTINGS

Best style skirtings firm

Others par to 1% easier.

OPEN TOP

Slightly dearer in better selection.

 

NEW ZEALAND MARKET REPORT

Summary

Market eases on the back of a limited selection.

Comment

In what can only be described as a very limited offering the New Zealand fine wool market fell this week in comparison to the last sale held in Christchurch.  Fine wools fell between 3 and 8%.  Halfbreds also fell this week by a similar amount.  Again the selection was extremely limited.  Bidding was still competitive but at a lower level.

FUHRMANN NZ MARKET REPORT

Summary

Market generally easier.

Comment

South Island only selling today with 5,600 bales on offer.  The selection consisted of 40% ewe hogget fleece, 31.0 to 35.0 micron, 25% ewe fleece, 36.0 to 40.0 micron, 13% early shorn/hogget second shear 31.0 o 38.0 micron and 7% associated oddments.  Also on offer was 5% merino and halfbred fleece and 10% miscellaneous types.  Keen widespread competition with China main and support from Australasian carpet mills and Indian Sub-Continent.

Fleece Wools

Limited selection merino/halfbred fleece generally 5-8% cheaper.

Crossbred fleece buyers favour.

Second Shears

75 mm and shorter 1.5% cheaper.

Oddments

All descriptions very firm.

Passings

23% Passed In.

Next Auction

South Island offering 4,500 bales and North Island offering 7,500 bales 5th December.

 

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 20 cents cheaper, skirtings 30 cents cheaper, open tops 25-40 cents cheaper.

FLEECE

Fleece prices were generally 20 cents cheaper today. High cvh lots were most affected and up to 30 cents cheaper. However the sale finished on a firm note with strong competition from main buyers.
Fleece had a passed-in rate of 17.6%.

SKIRTINGS

Skirtings were generally 30 cents cheaper.

OPEN TOP

Open tops were up to 25-40 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Fine wool firm and well supported, others easier.

COMMENT

Less activity from the Chinese sector on the broader merino types while good fine wool held it’s ground.

FLEECE

16.5 micron and finer fully firm

17.0 / 17.5 micron best unchanged, inferior 1% easier

18.0 / 18.5 micron best to good types in buyers favour, inferior 1% easier

19.0 / 21.5 micron up to 2% easier with better length and strength least affected.

SKIRTINGS

17.0 micron and finer fully firm

17.5 / 19.0 micron 1 to 2% easier

OPEN TOP

Nominally 1% easier.

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

There seems enough interest to source greasy wool coming from the Chinese sector but the current market volatility is resulting in extreme caution on price being shown by the customers. This in turn is affecting profitability and limiting traders willingness to take risk. Whenever the market shows an inclination for strengthening, it brings more optimistic buying activity. The moment it softens, the sales stop. But because the market is reacting in weekly patterns like this, up and down with regularity, we are of the opinion that wool is needed in the short term. The risk of being caught on the wrong side for price as a result of the volatility is the problem.

AWEX Eastern Indicator compared with 15/11/2019

Eastern Indicator

Close: 1555

Change in % -1.21

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

Authentico Index Values

15 Micron

Close: 2435

Change in %: -4.21

16 Micron

Close: 2275

Change in %: -2.49

17 Micron

Close: 2134

Change in %: -2.15

18 Micron

Close: 2024

Change in %: -1.94

19 Micron

Close: 1931

Change in %: -1.73

Authentico Indicator

Close: 2139

Change in %: -2.37

Forecast

The market tone on Thursday was completely different to that early Wednesday. With the market finishing strongly on Wednesday, this flowed through to Thursday and we were of the opinion that the market was better than it was reported on Thursday. Quite clearly, sitting in the sale room, it was a different and much more positive environment.

Auction offering – current week

Selling Centres for week 21

Market          Sale          Offered             Sold       Passed In

North                      S 21                      9666                        8444                  12.6%

South                     M 21                     17535                      15290                  12.8%

West                       F 21                       8518                         6488                 23.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 22                       W-T                           10597

South                      M 22                      W-T                           21380

West                        F 22                       W-T                            7303

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 10 cents dearer, skirtings 15 cents dearer, open tops 25 cents cheaper.

FLEECE

Fleece prices were generally 10 cents dearer today. It was noticeable that the poorer spec, high cvh wools lifted most today, with the discount closing rapidly, while better spec fleece was around 10cents dearer.
Despite the strong market, fleece still had a passed-in rate of 34.1%.

SKIRTINGS

Skirtings were generally 15 cents dearer.

OPEN TOP

Open tops were up to 25 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer.

COMMENT

Roller coaster continues. Much improved competition today.

FLEECE

Tending stronger as the sale progressed.

19.0 micron and finer fully firm on average but Chinese specification were tending a little dearer.

19.5 / 21.5 micron up to 1% dearer with particular focus on 21.0.

SKIRTINGS

Par to 1% dearer, best most affected.

OPEN TOP

Nominally par to 1% dearer.