AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market on average got off to a softer tone on Wednesday despite the generally good result for all better specification wools which closed generally firm. Wool of 16.0 micron and finer continue to be in demand. Not surprising, those clips certified non mulesed continue to sell with more consistent demand and are not exposed to the general volatility experienced by the overall market through this period. Our Authentico index fell just 0.5% for the week with the 19.0 range the most affected.

AWEX Eastern Indicator compared with 1/11/2019

Eastern Indicator

Close: 1555

Change in % -2.45

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

Authentico Index Values

15 Micron

Close: 2499

Change in %: -1.07

16 Micron

Close: 2280

Change in %: -0.04

17 Micron

Close: 2126

Change in %: -0.56

18 Micron

Close: 2044

Change in %: -0.24

19 Micron

Close: 1946

Change in %: -1.81

Authentico Indicator

Close: 2152

Change in %: -0.51

Forecast

Some general rain fell across eastern Australia. Some regions received more than others. For many it wasn’t drought breaking but our rural friends and colleagues all remain positive that a shift in the ongoing dry trend is changing. We are seeing some good consistent volumes on offer at the moment but just the six sale weeks remain up to Christmas. Volatility is likely to continue. We expect that some still need to buy wool soon and with the Fremantle auction finishing positively on Thursday, we hope that this will be good lead into next week.

Auction offering – current week

Selling Centres for week 19

Market          Sale          Offered             Sold       Passed In

North                      S 19                      9332                        8284                  11.2%

South                     M 19                     16788                       13918                 17.1%

West                       F 19                       7964                         5910                 25.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 20                       W-T                           10399

South                      M 20                      W-T                           20753

West                        F 20                       W-T                            7345

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 10 cents dearer, skirtings 10 cent dearer, open tops firm to 15 cents dearer.

FLEECE

Fleece prices opened the day 10 cents cheaper but firmed during the sale to finish around 10 cents dearer. Brokers withdrew a large quantity prior to sale and better spec fleece came under the most pressure.
Fleece had a passed-in rate of 33.6%.

SKIRTINGS

Skirtings were generally 10 cents dearer.

OPEN TOP

Open tops were up to 15 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Better type and specification well supported and firm.

COMMENT

Broader and lower specification easier.

FLEECE

Best length and strength 18.0 micron and finer fully firm, tending dearer.

Others-

15.5 micron fully firm

16.0 to 18.5 micron 1% easier

19.0 / 21.5 micron 1 to 2% easier.

SKIRTINGS

Generally par to 1% easier.

OPEN TOP

Nominally unchanged.

 

FUHRMANN NZ MARKET REPORT

Summary

Market dearer.

Comment

North Island only selling today with 5,200 bales on offer.  The selection consisted of predominantly hogget fleece and shears, 32.0 to 35.0 micron, good colour, some crossbred fleece and shears 36.0 micron and coarser, good and good to average colour.  Again widespread competition with China main and support from Europe, United Kingdom, India and Subcontinent.

Fleece Wools

Hogget fleece, 32-35 micron up to 2% dearer.

36.0 micron and coarser good colour tending sellers favour.

Good/average colour firm.

Second Shears

Hogget shears sellers favour.

Crossbred shears very firm.

Oddments

All descriptions 2% dearer.

Passings

8% Passed In.

Next Auction

South Island only selling with 8,200 bales on offer 14th November.

Fleece Wools Summary

↑ Hogget Fleece 32-35 mic
Variation %: 2.0

↑36.0 micron good colour
Variation %: Sellers favour

Good/average colour firm
Variation %:

Second Shears Summary

↑Hogget Shears
Variation %: Sellers favour

Crossbred Shears very firm
Variation %:

Oddments

↑ All descriptions
Variation %: 2.0

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 30-35 cents cheaper, skirtings 20-25 cent cheaper, open tops 30 cents cheaper.

FLEECE

Fleece prices were generally 30 cents cheaper today, with some better tested fleece 19.0u and finer selling at levels similar to last week.
Fleece had a passed-in rate of 21.7%.

SKIRTINGS

Skirtings were generally 20-25 cents cheaper.

OPEN TOP

Open tops were generally 30 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Better type and specification well supported and firm.

COMMENT

Broader and lower specification easier.

FLEECE

Best length and strength 18.5 micron and finer fully firm, tending dearer.

Others-

15.5 micron fully firm

16.0 to 18.5 micron 1% easier

19.0 / 21.5 micron 1 to 2% easier.

SKIRTINGS

Generally par to 1% easier.

OPEN TOP

Nominally unchanged.

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Following from last week’s positive lead, prices strengthened across the board on Wednesday and followed with a more stabilising market on Thursday. There was no doubt that the confidence shown in the auction room on Wednesday was much greater than we’ve seen in recent months and this was a welcome sign. As the AUD strengthened against the USD overnight Wednesday, there was a little more caution shown on Thursday but prices settled to be around about the same level on average. The better type and specification types were a little dearer and the average strength Chinese qualities a little irregular and cheaper. Fremantle opened cheaper than the east on Thursday but it was noted that the market improved towards the close of sale in that centre. Crossbred and carding types were event more keenly sought after than the merino combing types.

AWEX Eastern Indicator compared with 25/10/2019

Eastern Indicator

Close: 1594

Change in % +3.17

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

Authentico Index Values

15 Micron

Close: 2526

Change in %: +4.21

16 Micron

Close: 2281

Change in %: +3.40

17 Micron

Close: 2138

Change in %: +2.59

18 Micron

Close: 2049

Change in %: +1.59

19 Micron

Close: 1982

Change in %: +1.48

Authentico Indicator

Close: 2163

Change in %: +2.46

Forecast

If the current market trend continues, in the next few weeks we’ll slowly but surely shift some of the grower held wool onto the market. The availability of wool over the next four weeks is currently forecast to be greater than the same period last year. It has been an orderly approach to marketing this year despite the extreme volatility in price. On the occasion of dramatic falls, we’ve seen up to 50% of the fleece wool offered for sale being passed in. Likewise, when we have expected a better market, we haven’t seen a huge volume of held bales flood the auction. We are constantly encouraged by the greater communication between buyers and sellers these days and a maturing supply chain as a result. Let’s hope that this sensible approach continues towards Christmas. A less volatile market over a sustained period will add some much-needed confidence.

Auction offering – current week

Selling Centres for week 18

Market          Sale          Offered             Sold       Passed In

North                      S 18                      8946                        8561                  4.3%

South                     M 18                     17958                       17139                 4.6%

West                       F 18                       8396                        7308                 13.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 19                       W-T                            9515

South                      M 19                      W-T                          18386

West                        F 19                       W-T                           8596

 

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