AUSTRALIAN WEEKLY MARKET REPORT

Comment

The wool market closed on a much more positive tone after uncertainty on day one due to confusion on trade with China was sparked by the outbreak of the Coronavirus. Large grower withdrawals and passed in rates eventually helped to lead a recovery. There remains enough short term demand to cover the reduced volume eventually sold to market. The better Italian weaving types remained more keenly sought after. Our Authentico indicator closed at 2222, a fall of just 0.9% for the week.

AWEX Eastern Indicator compared with 24/01/2020

Eastern Indicator

Close: 1548

Change in % -1.78

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

Authentico Index Values

15 Micron

Close: 2604

Change in %: +2.84

16 Micron

Close: 2398

Change in %: -0.87

17 Micron

Close: 2221

Change in %: +0.49

18 Micron

Close: 2071

Change in %: -0.43

19 Micron

Close: 1944

Change in %: -1.77

Authentico Indicator

Close: 2222

Change in %: -0.94

Forecast

Global news will be closely monitored over the next few days. Most factory workers in China have been given until the 10th February to return to work. This will ultimately depend on travel restrictions from region to region and potentially personal circumstances and any change to this could spark further disruption. But for now, the wool market has performed very well with a combined effort from both buyers and sellers. Those who need wool in the short term could potentially have some difficulty with the reduced offerings.

Auction offering – current week

Selling Centres for week 31

Market          Sale          Offered             Sold       Passed In

North                      S 31                     8938                       6471                  27.6%

South                     M 31                    17165                      12321                  28.2%

West                       F 31                      7597                        5210                   31.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 32                     W/T                           11120

South                     M 32                    W/T                           19823

West                       F 32                     W/T                            9905

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece 30-40 cents dearer, skirtings 80 cents dearer and open tops 50-100 cents dearer.

FLEECE

The market recovered nearly all of yesterday’s losses, with prices generally 30-40 cents dearer. Better spec fleece were the most affected, and the large supply of tender wools saw these types drift towards the end of the sale.
Fleece had a passed-in rate of 23.0%.

SKIRTINGS

Skirtings were up to 80 cents dearer.

OPEN TOP

Open tops were 50-100 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Merino fleece offered today in Melbourne 3039 bales and 1535 bales withdrawn prior to sale and a further 708 bales passed in putting extreme pressure on wool with good specifications.

COMMENT

Italian types remain keenly sought after. Some better lots with NM status tending slight dearer.

Approximately a quarter of the fleece offering was passed in as they failed to meet grower asking prices.

FLEECE

Best 18.5 and finer keenly sought up to 2-3% dearer – Italian interests

Good / average 18.5 and finer fully firm.

All 19 / 21.5 micron  1-2% dearer.

 

SKIRTINGS

All descriptions generally 1-2% dearer.

OPEN TOP

all opentop generally 1-2% dearer.

 

FREMANTLE MARKET REPORT

COMMENT

Fleece 30-50 cents cheaper, skirtings 100 cents cheaper and open tops 50-100 cents cheaper.

FLEECE

Better followed the lead from eastern states and opened 50-60 cents cheaper. A very high passed-in rate saw prices edge back up during the sale to finish around 30-40 cents cheaper. Tender, high cvh wools were the most affected by the falls.
Fleece had a passed-in rate of 55.4%

SKIRTINGS

Skirtings were up to 100 cents cheaper.

OPEN TOP

Open tops were around 50-100 cents dearer, with 18.5-19.5u the most affected.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market cheaper. Very strong grower resistance to sell. This encouraged a better market performance than what could potentially have materialised.

COMMENT

Italian types remain keenly sought after. Some better lots with NM status tending slight dearer.

Approximately half of the fleece offering was passed in as they failed to meet grower asking prices.

FLEECE

Best 18.0 and finer generally unchanged – Italian interests

Good / average 18.0 and finer 2% easier

All 18.5 / 21.5 micron 3% easier

 

SKIRTINGS

Generally 4 to 5% easier

OPEN TOP

Nominally 3% easier

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Following last week’s dramatic opening and expectations of a 60,000-bale sale, the result this week was very encouraging. The opening prices in Melbourne settled at values ex Fremantle from the Thursday prior. Sydney prices more or less fell into line with that level and stayed around that basis over both sale days.

The better specification wool continues to be well supported. For our Italian weaver clients, the prices for the best fine wool remains very strong and slightly upward this week. We expect in small supply that these types will remain keenly sought after in the next few months. Superfine types were again in strong demand with 16.0 micron and finer dearer in small supply. Ultrafine wool around 14.0 again attracted good competition for the few bales on offer.

While the medium and broader merino wool was the strongest at the close of the week, it was the finer micron wools that were the most stable.

The AWEX EMI movement is a little more dramatic than reality as it had Sydney values starting from Wednesday 15th. Sydney did not sell on Thursday when the market corrected and AWEX use the most recent values in each centre when calculating the EMI.

AWEX Eastern Indicator compared with 17/01/2020

Eastern Indicator

Close: 1576

Change in % -2.05

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

Authentico Index Values

15 Micron

Close: 2680

Change in %: +2.56

16 Micron

Close: 2419

Change in %: -1.06

17 Micron

Close: 2232

Change in %: +0.31

18 Micron

Close: 2080

Change in %: -0.86

19 Micron

Close: 1979

Change in %: -0.25

Authentico Indicator

Close: 2243

Change in %: -0.09

Forecast

It was a poor decision of the industry to roster 60,000 bales for sale leading into the Chines New Year period. Fortunately, 12% of this quantity was withdrawn prior to sale and growers passed in another 16%. This helped the market to maintain a certain level of composure. It’s important that we keep a flow of wool onto the market that doesn’t encourage unnecessarily speculative decision making. Some small volatility in an open market is healthy, but it’s important that we communicate what is best to encourage more stability than what we’ve experienced recently. The exporters would certainly have had enormous difficulties financing 60,000 bales had they all been sold.

Auction offering – current week

Selling Centres for week 30

Market          Sale          Offered             Sold       Passed In

North                      S 30                     14105                       11973                  15.1%

South                     M 30                    26847                      22760                  15.2%

West                       F 30                      11714                        9540                   18.6%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 31                     W/T                           9700

South                     M 31                    W/T                           21538

West                       F 31                     W/T                            9442

 

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

EASTERN AUSTRALIAN MARKET REPORT

A positive market despite the large national offering.

COMMENT

Growers continued to pass wool in if the price didn’t meet their expectation. A more mature performance as all better wool’s were gently upwards today.

FLEECE

Better specification 18.0 and finer very firm in a limited selection.

Best 18.5 / 21.0 micron 1% dearer

Tender and low yielding wool’s 1% easier. Considering they make up a large percentage of the offering, it was a good result.

 

SKIRTINGS

Better fine skirtings par to 1% dearer, others firm.

OPEN TOP

Nominally 1% dearer.

 

FUHRMANN NZ MARKET REPORT

Summary

Market generally cheaper.

Comment

North Island only selling, offering 8,250 bales.  The selection consisted of 35% ewe fleece, 35.0 to 38.0 micron, 35% early shorn and second shear, 36.0 to 38.0 micron, 20% lambs fleece, 10% associated oddments and miscellaneous types.  Predominantly good colour fleece and shears.  There was widespread competition with Australasian carpet mills and Europe main and support from South East Asia and China.

Fleece Wools

Ewe fleece buyers favour.

Poorer style fleece in a limited selection 2.5% dearer.

Second Shears

All descriptions buyers favour.

Lambs

Erratic, up to 5% cheaper but super style low VM types commanding a premium.

Oddments

All descriptions buyers favour.

Passings

10% Passed In.

Next Auction

North Island offering 7,200 bales, South Island offering 10,060 bales 30th January.

EASTERN AUSTRALIAN MARKET REPORT

A good market in a large offering. Prices stabilised around Melbourne levels and then the tone improved a little.

COMMENT

Market compared to Melbourne 21/01. Good fine tending dearer others relatively unchanged.

FLEECE

Best fine very firm and remain around the same level of last Wednesday.

Good 18.5 micron and finer par to 1% dearer, 19.0 micron and broader generally unchanged.

Average types remain irregular with buyers able to be selective in a large offering of long staple length and average strength wool.

SKIRTINGS

Best skirtings at least 1% dearer, others firm.

OPEN TOP

Nominally 1% dearer.

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Best style well supported. Inferior style irregular in good competition.

FLEECE

18.5 micron and finer par to 1% cheaper.

19 to 21.5 micron 1-2% cheaper.

SKIRTINGS

All skirtings FNF were 1% dearer.

B fault 18.5 finer unchanged. 19 broader 1% cheaper.

OPEN TOP

All descriptions fully firm.