AUSTRALIAN WEEKLY MARKET REPORT

Comment

Wool auctions in Australia resumed this week following an unprecedented cancellation of sales in week 35 due to a cyber-attack on the servers of the dominant software provider to the industry. Many, including our company, have been critical of the industry reliance on this single provider which has continuously maintained old software at a high cost to the users. However, until now, no one has come forward to provide an alternative to a diverse range of businesses throughout the industry. From core lines, to broker and buyer systems, to transport companies and wool dumps, we all rely on interactive software to maintain a stable supply chain. We, like others, will be working towards alternatives as soon as practical and the Wool Testing Authority (AWTA) has already provided an electronic interchange for buyer pre-sale catalogues, broker invoices and shipping delivery orders. The industry cooperation during this difficult period, while criticised for cancelling a sale, has been outstanding.

Wool sales resumed with 62,000 bales offered. It was going to take an enormous effort from the exporters to support this volume and they responded. 47,000 bales were sold for M$81 in value. Growers are still passing wool in, despite global health and general market uncertainty. This will put the wool market in good shape because we remain of the opinion that overall supply is on the low side.

Our focus this week was on securing some best fine wool as we felt that this will be the last opportunity for any reasonable volume until the new season. These types remained generally firm over the week as did all good specification wool certified as NM or CM under the NWD. The NM or CM mulesing status could be considered a good ‘insurance policy’ for growers looking for more stable returns as they fluctuate in price at a much lower rate than the general merino offering. Demand deeper along the supply chain is the key to this.

AWEX Eastern Indicator compared with 21/02/2020

Eastern Indicator

Close: 1562

Change in % -1.20

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

Authentico Index Values

15 Micron

Close: 2665

Change in %: +1.60

16 Micron

Close: 2429

Change in %: +0.12

17 Micron

Close: 2239

Change in %: -0.89

18 Micron

Close: 2101

Change in %: -0.14

19 Micron

Close: 1985

Change in %: +0.35

Authentico Indicator

Close: 2253

Change in %: -0.08

Forecast

Rain is continuing to fall across much of Eastern Australia, particularly in the areas that need it the most. This will surely improve the confidence and mental space of our woolgrower friends. The rain is coming at an ideal time and those in the mixed farming regions will switch the attention to planting crops. Focus on the sheep might take a back step for a month or two. They now have grass and plenty of water. The main concern for the growers will be containing the risk of flystrike. Temperatures remain warm and there is plenty of moisture, the perfect storm for a problematic fly season.

Auction offering – current week

Selling Centres for week 36

Market          Sale          Offered             Sold       Passed In

North                      S 36                    18043                       14825                17.8%

South                     M 36                    29315                       22603               22.9%

West                       F 36                     14808                       9993                 32.5%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 37                    W/T                             8870

South                     M 37                    W/T                            25312

West                       F 37                     W/T                            12498

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece 20-50 cents cheaper, skirtings 30-40 cheaper and open tops 20 cents cheaper.

FLEECE

Fleece prices fell again today, with low yielding, high cvh lots the most affected. Better spec lots were around 20 cents cheaper, while poorer types were up to 50-60 cents cheaper.
Fleece had a passed-in rate of 48.3%.

SKIRTINGS

Skirtings were generally 30-40 cents cheaper.

OPEN TOP

Open tops were generally 20 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market a little easier in a very large selection. Best least affected.

COMMENT

A higher passed in rate. Growers continue to reserve the right to hold wool that doesn’t meet their pre-sale expectation.

FLEECE

All best specification lots were generally firm as buyers continue to chase good quality wool.

All good Chinese specification 1% easier from 16.5 to 21.5 micron

Inferior lots with low yield or high mid-break up to 2% easier

SKIRTINGS

2% easier

OPEN TOP

1% easier

 

NEW ZEALAND MARKET REPORT

Summary

There were no fine wools on offer in New Zealand this week.

Comment

This week’s Christchurch sale had no fine wools in the selection.

FUHRMANN NZ MARKET REPORT

Summary

Market firm tending buyers favour, with the exception of finer lambs which were dearer.

Comment

South Island only today offering 5,300 bales this week.  The selection consisted of 50% average colour ewe fleece, 34.0 to 38.0 micron, 17% good colour second shear, 35.0 to 38.0 micron, 19% lambs fleece, 29.0 to 31.0 micron, 10% associated oddments and 4% miscellaneous types.  Widespread competition with most sectors operating.  China main, with support from South East Asia, United Kingdom, Europe and Australasian carpet mills.

Fleece Wools

Average colour ewe fleece buyers favour.

Second Shears

All descriptions firm.

Lambs

28.5 micron & finer 3.5% dearer.

29.0 micron and coarser 2% cheaper.

Oddments

All descriptions firm.

Passings

20% Passed In.

Next Auction

South Island offering 6,400 bales, North Island offering 13,300 bales on 12th March.

FREMANTLE MARKET REPORT

COMMENT

Fleece 10 cents cheaper, skirtings and open tops 20 cents cheaper.

FLEECE

Fleece prices open firm to 10 cents dearer with strong demand for best style lots. As the sale progressed prices eased back to finish around 10 cents cheaper. Low yielding, high vm lots felt the pressure the most and were neglected. Best style fleece maintained their levels to the end of the sale.
Fleece had a passed-in rate of 34.0%.

SKIRTINGS

Skirtings were generally 20 cents cheaper.

OPEN TOP

Open tops were generally 20 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Sales resume on a sound note. Most descriptions firm in a large national offering.

COMMENT

Prices opened firm and remained that way to the close of sale. Some broader merino descriptions were harder to buy.

FLEECE

Best 18.5 micron and finer fully firm and dominated by Italian interests.

Better specification 19.0 / 21.5 micron 1% dearer

Good specification 17.5 micron and finer 1% easier

Good specification 18.5 / 21.5 micron fully firm

SKIRTINGS

Unchanged in a large miscellaneous selection including some best fine types.

OPEN TOP

Unchanged