NEW ZEALAND MARKET REPORT

Summary

Merino market rises.

Comment

The South Island had another good offering of fine wools and halfbreds this week with some good quality clips available.  The market followed the same upward trend seen in Australia over the past two weeks with gains of up 10% over most microns with 18.0 micron experiencing even greater gains when compared to the last Christchurch sale.  Substantial gains were also seen across oddments types also in the region of 10%.  Halfbred types also enjoyed a rise in the market with some types increasing by up to 10%.

FUHRMANN NZ MARKET REPORT

Summary

Market rises.

Comment

South Island only offering 10,170 bales.  The selection consisted of 45% crossbred and hogget fleece wool, mainly good/average colour, 10% crossbred second shear 75/100mm and shorter good colour, 10% halfbred fleece good style 22.0 to 29.0 micron good style, 8% merino fleece, 16.0 to 21.0 micron super style, 15% associated oddments and 5% miscellaneous types.  Keen widespread competition with the Indian Subcontinent and Australasian carpet mills main with support from the Continent, China and United Kingdom.

Fleece Wools

Good colour crossbred fleece 5% dearer.

Average/poor style crossbred fleece 2.5% dearer.

Merino fleece up to 20% dearer.

Halfbred fleece 15% dearer.

Second Shears

75/100mm & shorter sellers favour.

Oddments

All descriptions 4% dearer.

Passings

7% Passed In.

Next Auction

North Island only, offering 6,400 bales, 1 October 2020.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The last two weeks have seen a significant change in market sentiment. As we said a few weeks ago, the price then was not a true reflection on the value of wool. It was more a reflection of the circumstances that the global economy is in. Wool production in Australia remains at a 100-year low and prices have been at least 40% lower than the same time last year. Simple supply and demand economics will eventually result in a more positive market outcome. We presume that has been the reason for the quick turnaround. The industry is now smaller than ever and market reactions are expected to be quicker and more volatile. Most had stood and watched while outlook remained uncertain. That has been understandable. Eventually however, the low prices and a fear of missing out has resulted in a rush on business for prompt shipment with the Chinese market dominating.

AWEX Eastern Indicator compared with 18/09/2020

Eastern Indicator

Close: 1036

Change in % +10.57

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

Authentico Index Values

15 Micron

Close: 2320

Change in %:  +6.13

16 Micron

Close: 1977

Change in %: +6.92

17 Micron

Close: 1739

Change in %: +6.23

18 Micron

Close: 1545

Change in %: +6.63

19 Micron

Close: 1350

Change in %: +9.85

Authentico Indicator

Close: 1748

Change in %: +6.78

Forecast

Not a lot has changed with regards to the global retail and consumer confidence situation. We expect some volatility in the short term will continue. It’s not uncommon at this time of the season. However, growers have shown a strong resistance to sell at the low levels and despite the improved market, not all will be prepared to sell yet. This will limit the volume available and the recent low levels are now unlikely to return.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 13                      6720                         6554                  2.5%

South                     M 13                     11384                       11183                   1.8%

West                       F 13                       5156                         4904                   4.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 14                        T / W                         8002

South                      M 14                       T / W                         19149

West                        F 14                        T / W                         6088

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 100-130 cents dearer, skirtings 120-14 cents dearer and open tops generally 40-60 cents dearer.

FLEECE

The fleece market followed eastern states and saw prices rise 100-130 cents compared to last week. 19.0u and finer best spec fleece was the most affected. Towards the end of the sale average style 20.0u and broader fleece eased back 10 cents from highs earlier. There was good competition among the exporters today.

The passed-in rate for fleece today was 5.8%.

SKIRTINGS

Skirtings were generally 100-140 cents dearer.

OPEN TOP

Open tops were generally 40-60 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market continues upward strongly.

COMMENT

All types and descriptions dearer. A very small percentage passed in today.

FLEECE

21.5 micron and finer 3% dearer

SKIRTINGS

4 to 5% dearer

OPEN TOP

Nominally 3 to 4% dearer

EASTERN AUSTRALIAN MARKET REPORT

Market considerably dearer.

COMMENT

Prices opened at the high basis and were maintained through the sale.

FLEECE

18.5 micron and finer 5% dearer

19.0 / 20.5 micron 8% dearer

21.0/21.5 micron 7% dearer

SKIRTINGS

3 to 4% dearer

OPEN TOP

Nominally 3 to 4% dearer

To-get-there Together 2030

The Schneider Group Sustainability Strategy

Combating Climate change through joint action across the wool industry supply chain.

Together 2030

‘Together 2030’ is the Sustainability Strategy of The Schneider Group, which sets clear Science Based Targets to combat climate change. In order to successfully implement the Together 2030 strategy, the Schneider Group has developed activities and projects in two areas: 1) industrial emissions reduction within all Schneider Group industrial plants and offices and 2) wool supply chain collaboration through the Authentico Integrity Scheme and beyond. 

Time is running – Actions taken so far

The year 2030 is a timeframe that is aligned with the Sustainable Development Goals and the respective 1.5 degree Celsius scenario defined by the UN IPCC. The year 2030 may still seem far away, but with climate change, the whole world is running against the clock, and only actions taken as early as possible will take the needed effect. We have always taken the environment into account and therefore our mills are already to the highest international standards but we needed to coordinate at group level the strategies for bigger impact and to create the right culture of internal collaboration and awareness that we need to give our biggest effort to tackle this endeavour. Only openness, quality data, determination and teamwork can get us there, TOGETHER.

Establishing what is through Life Cycle Assessment

To find our starting point, we decided to perform a Life Cycle Assessment (LCA) for our production, and our wool top. This led to measuring the impact of all our six mills – 4 wool and 2 cashmere mills – as well as the farming stage. Within the LCA we focused on the four most relevant indicators for our operations: energy consumption, greenhouse gas emissions, water stewardship, and land occupation.

Starting point: 750.000 tonnes of CO2e

In a nutshell, the biggest issue is that for all the wool tops we produce each year as a Group, we emit in the order of 750.000 tonnes of CO2e (carbon dioxide equivalent). Out of this, roughly 35.000 tonnes are from transporting the wool to our mills and processing it; whilst 715.000 tonnes are allocated to the wool production. Yes, amazingly 4,6% of the impact of GHG (greenhouse gases) is for industry and 95,4% for farming, according to current measuring methodologies; which we also strive to modify as an industry because they do not account for user phase and end of life phases nor for externalities such as microplastics nor oil leaks.  However, we need to do our homework and assume responsibilities.  To put things into perspective, according to recent studies from the EU the yearly emission per capita is 4,97 tonnes of CO2e. So The Schneider Group’s processing would equate to a town the size of Kawerau, Huntly or Portland (roughly 7.000 inhabitants); whereas the emissions allocated to the production of the greasy wool consumed by the group on yearly basis would be Geelong or Tauranga (roughly 143.000 inhabitants) in comparison.

Creation of Chief Sustainability Officer Position

In September 2020, we also created the position of the Chief Sustainability Officer which is carried out by Willy Gallia. This was an important step for the Group to fully integrate sustainability within our business structures and allow our teams and business units to better work together towards our sustainability goals.

Official commitment through Science Based Targets

On 14 April 2020, The Schneider Group officially committed to set science-based targets to reduce carbon emissions to keep a rise in global temperature to well below 2°C by joining the Science Based Target initiative.

We identified that science-based targets are the most demanding, precise and measurable target setting tools available. By committing to the Science Based Targets we want to hold ourselves accountable to the most serious and relevant sustainability credentials any company could aim for. While our commitment will not be a walk in the park, science-based targets will enable us to measure exactly where we stand and help us identify in which areas of the business we can create the most effective changes.  It was TOGETHER through science and determination that we managed to win the battle against ozone depletion and we firmly believe this is the precise road that can lead us to win the battle against climate change.

Joining Climate Action Network

Over the past years, we connected with relevant organisations such as UNFCCC, UNECE, Textile Exchange and the IWTO Sustainable Practices Working Group. Just like our strategy name Together 2030, we believe that the necessary change needed in order to combat climate change and to ensure a sustainable future can only be achieved by joining forces and finding consensus. We therefore invest our people, time and resources into the organisations that share our goals. At the same time we also create our own network and provide a platform for collaboration through our Authentico and Wool Connect initiatives. 

Integrity Scheme Authentico

Already in 2018, we launched the Authentico Integrity Scheme for wool and cashmere fibre. Authentico certified wool for example is mulesing-free merino wool grown to the highest standards by over 650 wool growers based in Australia, New Zealand and Argentina with more grower countries to join in the future.  Authentico wool can be traced from farm all the way through the wool supply chain of all Schneider Group mills with Blockchain technology. Furthermore, Authentico’s aim is not only to create a transparent supply chain but also tell the beautiful stories of growing wool and carry the intangibles up to the end users. 

Wool Connect Grower Conference

Another initiative under the umbrella Together 2030 is the Wool Connect grower conference. The three day online event invites all wool growers and supply chain partners to exchange knowledge and solutions to start building consensus that will allow us to work together to fight climate change and ensure a sustainable future for the wool industry which is also a healthier, more lucrative business for all.  Only by collective action can we achieve the industry standards and positioning that we all aim for: TOGETHER.  

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Despite the larger weekly offering which included 3,000 bales from New Zealand offered in Melbourne, the market has staged a very encouraging rebound. There has seemed a level of resistance in recent weeks. Growers we offering less wool and prepared to pass their wool in. This has resulted in a squeeze on supply. Prior to the auction, the market was expected to be strong. It was the level of this market strength that caught a few by surprise. Prices continued to strengthen through the sale with indent buying dominating the market as buyers competed to secure volume.

AWEX Eastern Indicator compared with 11/09/2020

Eastern Indicator

Close: 937

Change in % +5.28

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

Authentico Index Values

15 Micron

Close: 2186

Change in %:  +1.49

16 Micron

Close: 1849

Change in %: +5.29

17 Micron

Close: 1637

Change in %: +5.27

18 Micron

Close: 1449

Change in %: +7.09

19 Micron

Close: 1229

Change in %: +5.77

Authentico Indicator

Close: 1637

Change in %: +5.27

Forecast

A slight reduction in volume available next week. It is a designated superfine sale in Sydney but we expect the volume of quality fine wool on offer to remain very limited. It’s hard to imagine the reduction in supply of quality superfine wool in such a short period of time.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 12                      8376                         7870                  6.0%

South                     M 12                    13467                       12682                  5.8%

West                       F 12                      4369                         4150                   5.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 13                        T / W                         7652

South                      M 13                      T / W                         12795

West                        F 13                           W                            4583

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 80-100 cents dearer, skirtings 40-50 cents dearer and open tops generally 25 cents dearer.

FLEECE

The fleece market followed eastern states and saw prices rise 80-100 cents compared to last week. 19.0u and finer best spec fleece was the most affected. Towards the end of the sale average style 19.5u and broader fleece eased back 10 cents from highs earlier. There was good competition among the exporters today.

The passed-in rate for fleece today was 4.3%.

SKIRTINGS

Skirtings were generally 40-50 cents dearer.

OPEN TOP

Open tops were generally 25 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer again. A very positive result.

COMMENT

Some buyers chasing to accumulate volume right to the close of sale. Prices improved through to the end.

FLEECE

15.5 very firm in a limited selection

16.5 micron 1% dearer

17.5 micron 2% dearer

18.5 / 21.5 micron 3% to 4% dearer

SKIRTINGS

3% to 4% dearer for 19.5 micron and finer

OPEN TOP

Nominally up to 4% dearer