NEW ZEALAND MARKET REPORT

Summary

Again extremely limited selection of finer wools.

Comment

As we reach the end of the year there were very few fine wools on offer at this weeks sale in Christchurch.  Again too few to quote with any meaning.

Merry Christmas and Best Wishes for the New Year.

FUHRMANN NZ MARKET REPORT

Summary

Market generally dearer.

Comment

North Island offering 7,800 bales and South Island offering 5,500 bales.  The selection consisted of 35% ewe and hogget fleece, 32.0 to 38.0 micron, 40% early shorn and hogget second shear, 31.0 to 38.0 micron, 11% lambs fleece, 12% associated oddments and 2% miscellaneous types.  There was keen widespread competition again with Australasian carpet mills, India sub-continent and Europe main with limited support from China.

Fleece Wools

Crossbred hogget fleece, 32.0 to 33.5 micron 3% dearer.

Crossbred ewe fleece, good colour buyers favour.

Crossbred ewe fleece, poorer colour 4% dearer.

Second Shears

75/100 mm and shorter generally firm.

Lambs

Early season lambs mixed but basically firm.

Oddments

Combing oddments firm.

Clothing oddments 5.5% dearer.

Passings

10% Passed In.

Next Auction

North Island only offering 11,500 bales 9th January.

MERRY CHRISTMAS AND HAPPY NEW YEAR!

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Very welcome rain is currently falling over much of Eastern Australia including both drought and fire affected regions. They are recording good steady rain falls that is expected to last for a few days. This is extremely good news for our country friends and fire fighters alike and we wish them all well.

Added to this good news, the wool market was poised to open strongly in 2020 with expectations of a 2 to 3% improvement for Tuesday’s opening sale day. Chinese interest had improved slowly over the recess following improved trade news. In the end prices were around 4% dearer followed by a more steadying tone on Wednesday. The finer micron types, 17.0 and finer, were clearly in favor and continued to advance over both days. There were a small offering of 13.5/14.5 micron shorter length types that exceed most expectations with very strong support from both Europe and Chinese interests.

There was a concerning drop in prices late Wednesday in Fremantle with a higher passed in rate as prices lost at least half of the previous day’s gains. This led to a cautious open to Thursday in Melbourne (no sale in Sydney) but confidence improved as the sale continued. Prices finished higher than those in the last session from Fremantle on Wednesday. In the end the market closed the week around about the original expectation of about 3% dearer for 18.0 and broader while the finer microns were 4 to 6% dearer (finest most affected).

AWEX Eastern Indicator compared with 20/12/2019

Eastern Indicator

Close: 1609

Change in % +3.27

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

Authentico Index Values

15 Micron

Close: 2613

Change in %: +6.04

16 Micron

Close: 2445

Change in %: +4.48

17 Micron

Close: 2225

Change in %: +4.80

18 Micron

Close: 2098

Change in %: +3.10

19 Micron

Close: 1984

Change in %: +2.37

Authentico Indicator

Close: 2245

Change in %: +4.13

Forecast

The variability seen in the first week was not ideal but we were encouraged by the level of confidence and a more mature market on Thursday. We have a very large offering next week that perhaps spooked the buying trade on Wednesday. We remain confident that the Chinese sector needs greasy wool in the short term. The ability of the exporters to finance the clip with prompt cash payment terms was also floated as a reason for reduce activity. It was not necessarily that buyers were less willing to buy.

Auction offering – current week

Selling Centres for week 29

Market          Sale          Offered             Sold       Passed In

North                      S 29                     11,086                     10,673                  3.7%

South                     M 29                    27,393                      25,087                 8.4%

West                       F 29                      13,782                      11,029                 20.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 30                     W/T                           15,985

South                     M 30                   T/W/T                        30,297

West                       F 30                     W/T                            13,608

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 10 cents dearer, skirtings 15-20 cents dearer and open tops 10-15 cents dearer.

FLEECE

Good demand combined with a smaller offering saw the fleece market in end the year on a strong note. Fleece prices were generally 10 cents dearer across all microns.
Fleece had a passed-in rate of 9.0%.

SKIRTINGS

Skirtings were generally 15-20 cents dearer.

OPEN TOP

Open tops were around 10-15 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer. Sales close for Christmas on a strong note leaving a positive tone for auctions to resume in 2020.

COMMENT

All descriptions dearer. Sydney was a little more affected than Melbourne, likely due to a smaller selection and favourable length and strength specifications.

FLEECE

1 to 2% dearer with Sydney more than Melbourne.

SKIRTINGS

17.5 micron and finer very firm.

18.0 / 19.0 micron in small supply were 1 to 2% dearer.

OPEN TOP

Nominally 1% dearer.

 

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 70 cents dearer, skirtings 15-20 cents dearer and open tops 25 cents dearer.

FLEECE

Fleece prices opened 50 cents dearer when the sale began, and quickly pushed up to 70 cents dearer. Prices maintained these levels for the rest of the sale. Some exporters such as Meliwa, Seatech, Modiano and West Coast were all very quiet.
Fleece had a passed-in rate of 4.2%.

SKIRTINGS

Skirtings were generally 15-20 cents dearer.

OPEN TOP

18.5u and finer open tops were 40-50 cents dearer, while 19.5u and broader were 15-20 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Final sale in a turbulent 2019 for wool prices. All prices sharply upward today in a continuation of this trend.

COMMENT

Considerably better demand resulting in all types and descriptions approximately 3% dearer.

FLEECE

All types up to 3% dearer with 18.5 micron a little more than that.

The more inferior lots were the most affected.

SKIRTINGS

18.0 micron and finer best skirtings in keen demand and 3 to 5% dearer. 18.5 / 19.0 micron were 1 to 2% dearer.

OPEN TOP

Nominally 2 to 3% dearer.

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Prices were generally well maintained this week in one of the more stable markets in recent months. Buying pressure from those representing Chinese traders and Topmakers was more noticeable and this was despite the concern of the large national offering. Growers did remove some wool from sale prior to auction which reduced the final numbers available but still another M$62 worth of wool was sold to the trade. All fleece types and descriptions in general closed a little dearer compared to last week except that with less interest on the mulesing status from China, the Authentico index’s weren’t as affected.

AWEX Eastern Indicator compared with 06/12/2019

Eastern Indicator

Close: 1503

Change in % +0.74

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

Authentico Index Values

15 Micron

Close: 2473

Change in %: -0.24

16 Micron

Close: 2249

Change in %: +0.13

17 Micron

Close: 2051

Change in %: -1.68

18 Micron

Close: 1941

Change in %: -1.47

19 Micron

Close: 1861

Change in %: -2.26

Authentico Indicator

Close: 2081

Change in %: -1.09

Forecast

There does appear more demand as we move closer to the New Year. Perhaps some are expecting a stronger market in January which is often the case. It will probably depend a little on how we finish next week with another 39,000 bales available.

It’s difficult to get a line on what volume of grower held bales are now lying in store waiting for a better market. No doubt growers are more focused on selling into a good market and this has certainly helped to sell this year’s clip in a more orderly fashion. This is expected to continue. For example, despite the positive result for the week, approximately 20% of the original volume available was either withdrawn prior to sale (10%) or passed in below grower reserves (10%).

Next we sell on Tuesday and Wednesday nationally.

Auction offering – current week

Selling Centres for week 24

Market          Sale          Offered             Sold       Passed In

North                      S 24                     9777                         8999                  8.0%

South                     M 24                    24112                       21502                10.8%

West                       F 24                      8653                        7484                  13.5%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 25                       T-W                         10400

South                      M 25                      T-W                         20468

West                        F 25                       T-W                          8562

 

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

EASTERN AUSTRALIAN MARKET REPORT

Market firm

COMMENT

All good specification wool remains keenly sought after.

FLEECE

Generally 0.5% dearer on average. The best a little more, the inferior lots a little less.

SKIRTINGS

Not as keenly sought and tended 1% easier with higher VM lots more affected.

OPEN TOP

Generally unchanged.

 

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 5-10 cents dearer, skirtings 15-20 cents cheaper and open tops 10-15 cents cheaper.

FLEECE

Strong demand for well tested fleece helped push prices 5-10 cents dearer across all microns today.
Fleece had a passed-in rate of 17.1%

SKIRTINGS

Skirtings were generally 15-20 cents cheaper.

OPEN TOP

Open tops 15-20 cents cheaper.