AUSTRALIAN WEEKLY MARKET REPORT

Comment

The focus this week for us was the quality Tasmanian selection sold on Tuesday in Melbourne. Now that the superfine Newcastle sales are no longer, this was the largest quality superfine offering for a single sale day this season. Some were concerned with what effect this might have on the market under the current circumstances. However, once we inspected the quality offering, we were convinced that there would be sufficient interest from Italian weavers. There will be few opportunities for best quality fine wool remaining for those who need to meet production requirements over the next few months.

The market reacted accordingly. It was a positive sale result that reflected the quality on offer. We were pleased to buy some nice wool for our production.

Prices, on average, settled on Wednesday and Thursday but it must have been almost impossible to compare between what was on offer over those days compared with the Tasmanian offering.

AWEX Eastern Indicator compared with 07/02/2020

Eastern Indicator

Close: 1568

Change in % -0.57

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

Authentico Index Values

15 Micron

Close: 2687

Change in %: +0.64

16 Micron

Close: 2456

Change in %: +1.32

17 Micron

Close: 2231

Change in %: -0.89

18 Micron

Close: 2088

Change in %: -2.11

19 Micron

Close: 1973

Change in %: -0.35

Authentico Indicator

Close: 2253

Change in %: -0.53

Forecast

The biggest issue regarding quality and market price at the moment is the mid break. Typically, as a result of the usual spring break in the southern states, we are now seeing a high percentage of tender wool with a break on or around the middle. These types are very difficult to process with a high probability that wool tops will achieve a greater co-efficient of variation (cvh) in length. This is bad for spinning and weaving and certainly has an impact on the general market. In another 6 weeks or so we should start to see that break point move towards the tip.

Auction offering – current week

Selling Centres for week 33

Market          Sale          Offered             Sold       Passed In

North                      S 33                     7922                        6626                 16.4%

South                     M 33                    21474                       17150                 20.1%

West                       F 33                     10780                       7550                  30.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 34                     W/T                            8508

South                     M 34                   T/W/T                        22369

West                       F 34                     W/T                            12073

 

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

NEW ZEALAND MARKET REPORT

Summary

No fine wools on offer

Comment

There were no fine wools on offer this week.  The market however struggled under the shadow of the issues in China.

EASTERN AUSTRALIAN MARKET REPORT

A better selection. Good Italian types remain keenly sought after.

COMMENT

A varied selection. Good general competition with average and inferior wool a little easier.

FLEECE

Best 16.0 / 16.5 micron fully firm

Best 17.0 / 18.0 micron 1% dearer

Best 18.5 / 19.5 micron fully firm

All good to average 1% easier with high mid break percentage the main reason for discount to market rate.

SKIRTINGS

Generally 1% easier

OPEN TOP

Nominally 1% easier.

 

FUHRMANN NZ MARKET REPORT

Summary

Market mixed again.

Comment

North Island offering 9,500 bales and the South Island offering 9,500 bales this week.  The selection consisted of 50% ewe fleece, 34.0 to 38.0 micron, 10% second shear, 32.0 to 39.0 micron, 25% lambs fleece, 28.0 to 30.0 micron and 15% associated oddments.  Widespread competition with most sectors operating.  Australasian carpet mills still maintaining pressure, United Kingdom and Europe main with support from South East Asia.  China still a notable absence.

Fleece Wools

Good/average colour ewe fleece buyers favour.

Second Shears

All descriptions buyers favour.

Lambs

Good colour and style 4% cheaper.

Oddments

All descriptions sellers favour.

Passings

38% Passed In.

Next Auction

South Island only offering 5,000 bales 20th February.

EASTERN AUSTRALIAN MARKET REPORT

Market well supported despite the global uncertainty.

COMMENT

Best style / strength keenly sought after.

FLEECE

Best style 16 to 21 micron generally unchanged in good competition.

Good/ave style irregular.

SKIRTINGS

Best style generally unchanged.

B fault 1% easier.

OPEN TOP

All open top nominally very firm.

 

EASTERN AUSTRALIAN MARKET REPORT

An excellent Tasmanian fine and superfine selection. Best wool tending dearer.

COMMENT

30% passed in rate. The best types were keenly sought after.

FLEECE

Best 16.0 / 18.5 micron 1% dearer

Good 15.5 / 16.0 micron slightly easier.

All others 18.5 and finer fully firm

19.0 / 21.0 micron generally unchanged in a small selection.

SKIRTINGS

Best lots up to 1% dearer in a good quality offering.

OPEN TOP

All open top nominally very firm.

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was an exceptionally positive market this week. From the opening lot, it was obvious that there was sufficient prompt demand and prices remained strong from that point on. 18.0 micron and finer were keenly sought after, particularly those with better style and specification. Those more suited to the Italian weaver market. Chinese interests were active and at the close the average Chinese specification types were most affected by the strengthening tone. Wool sold this week would not be due for arrival into China until late March so we would have to assume that wool will be flowing again by then and production back to some normality.

Some of the smaller regional brokers offered support this week by extending the prompt date out one extra week. This is expected to continue for the next few weeks at least. This change is to allow exporters some leniency with cash flow while the situation in China has resulted in a tightening availability of cash. This initiative has been well received by exporters and this gesture of industry cooperation has been well acknowledged and assisted the positive market reaction.

AWEX Eastern Indicator compared with 31/01/2020

Eastern Indicator

Close: 1577

Change in % +1.87

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

Authentico Index Values

15 Micron

Close: 2670

Change in %: +2.53

16 Micron

Close: 2424

Change in %: +1.08

17 Micron

Close: 2251

Change in %: +1.35

18 Micron

Close: 2133

Change in %: +2.99

19 Micron

Close: 1980

Change in %: +1.85

Authentico Indicator

Close: 2265

Change in %: +1.94

Forecast

Our Authentico indicator has reached the highest point since we established it in July 2019. The previous peak was week 02, July 2019 at 2247. The Indicator is now at 2265. The strength can be attributed to the recent form of best fine wool types that have been in strong demand, particularly those with good specification and processing performance. We are of the opinion that there are less better-quality wools finer than 17.5 micron than in the previous few seasons and this is impacting positively on the market price for best fine wool. No doubt the impact of the drought in the New England region has been the greatest contributing factor.

There is a designated Tasmanian feature sale scheduled for next Tuesday. We are aware of some very suitable fine and super fine wool clips that have been kept for this sale. This should encourage strong support from Italian interests. Supply of best fine wool often shows a peak in February before dropping off considerably through until August.

Auction offering – current week

Selling Centres for week 32

Market          Sale          Offered             Sold       Passed In

North                      S 32                     9129                         8007                 12.3%

South                     M 32                    14027                       11945                 14.8%

West                       F 32                      7406                        6075                  18.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 33                     W/T                            8054

South                     M 33                   T/W/T                        24164

West                       F 33                     W/T                            10714

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece 15-20 cents dearer, skirtings 20-30 cents dearer and open tops were generally unchanged.

FLEECE

Fleece was generally 20 cents dearer today, with better spec lots the most affected. Some higher vm, high cvh fleece drifted towards the end of the sale, otherwise the market finished on a firm tone.
Fleece had a passed-in rate of 9.5%.

SKIRTINGS

Skirtings were around 20-30 cents dearer.

OPEN TOP

Open tops were generally unchanged.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer.

COMMENT

The stronger market tone continued today. Chinese types and descriptions were keenly sought after.

FLEECE

All 15.5 / 16.5 micron 1% dearer

Best 17.0 / 18.5 micron fully firm

Good to average types 16.5 / 18.5 micron 1% dearer

Good to average 19.0 / 19.5 micron 2% dearer

All 20.0 / 21.0 micron 1% dearer

 

SKIRTINGS

Better skirtings 18.0 micron and finer 1 to 2% dearer, 18.5 / 19.0 micron 1% dearer.

OPEN TOP

All open top nominally 1% dearer.

 

EASTERN AUSTRALIAN MARKET REPORT

Market very firm. An exceptional result under the current circumstances.

COMMENT

Despite the general concern from a cautious Chinese market and our reliance on it, all types and descriptions were keenly sought today.

FLEECE

All 15.5 / 16.0 micron very firm

Best 16.5 / 19.0 micron 1% dearer

Good to average types 16.5 / 19.5 micron very firm and dominant in the overall selection.

20.0 / 21.0 micron sellers favour in small supply.

 

SKIRTINGS

Better skirtings all 1% dearer with 18.0 micron and finer most affected.

OPEN TOP

All open top nominally 1% dearer.