AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market was cheaper across the board and with a clearance of only 17,000 bales we are no doubt in a difficult period. Growers still have the possibility to sell if they have the necessity and buyers can deliver against any small commitments that they may have. The situation appears worse in local currency. The Australian dollar is finding favour due to our positive handling of the Covid-19 pandemic. There are only a few reported cases per day nationally and some states and territories have had no reported cases for days on end now. This is seeing improved confidence in the Australian dollar. It’s now trading at 0.655 against the USD, an increase of around 3.8% compared to this time last week. The AWEX EMI in US value was only 2 cents lower over the week.

AWEX Eastern Indicator compared with 24/04/2020

Eastern Indicator

Close: 1225

Change in % -3.69

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

Authentico Index Values

15 Micron

Close: 2389

Change in %:  -1.2

16 Micron

Close: 2129

Change in %: -0.70

17 Micron

Close: 1838

Change in %: -2.55

18 Micron

Close: 1673

Change in %: -2.39

19 Micron

Close: 1564

Change in %: -2.37

Authentico Indicator

Close: 1874

Change in %: -1.94

Forecast

While the central west of NSW is now experiencing a considerably better season, we still expect dust penetration to remain an issue for a few months to come. The dust from the drought over the past 12 months is very much penetrating right down the length of the wool staple. The rain doesn’t wash it out. We are hearing unfortunate stories of the dust now turning to mud on the sheep’s back as the rain is continuing to fall. It’s a tough life on the land, and our wool growing friends are doing everything they can to the maintain the best welfare of their animals.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 44                     4993                         3606                27.8%

South                     M 44                    12520                        9637                23.0%

West                       F 44                      5391                          3775                30.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 45                         W                              5475

South                     M 45                       T-W                           16701

West                       F 45                          T                               4748

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece 30 cents cheaper, skirtings 20-30 cents cheaper and open tops 50-80 cents cheaper.

FLEECE

The fleece market fell a further 20-40 cents today. This time it was the finer end that suffered the most with falls up to 50 cents while the 20.5u and broader fell by around 15-20 cents.

Fleece had a high passed-in rate of 40.2%.

SKIRTINGS

Skirtings were generally 20-30 cents cheaper with the fine end the most affected.

OPEN TOP

Open tops were generally 50-80 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market cheaper. Almost 30% passed in.

COMMENT

Finer merino types least affected.

FLEECE

16.5 micron generally unchanged in a limited selection.

17.5 micron 2% easier

18.5 / 19.5 micron 1% easier

20.5 / 21.5 micron 2% easier, broadest end most affected.

SKIRTINGS

Generally 1 to 2 % easier in a small and variable selection.

OPEN TOP

Nominally 1 to 2% easier.

 

FREMANTLE MARKET REPORT

COMMENT

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

FLEECE

The fleece market continued to drift lower today with all types around 30 cents cheaper. Some better tested 17.5u fleece sold at levels similar to last week.

Fleece had a passed-in rate of 33.6%.

SKIRTINGS

Skirtings were generally 30-40 cents cheaper.

OPEN TOP

Open tops were generally 30-40 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Best style and strength well supported despite poor style offering overall.

COMMENT

Some small movements related to variable quality and limited supply.

FLEECE

16.5 to 21.5 micron generally 1-2% easier. Best style least affected.

 

SKIRTINGS

Better lots par to 1% easier.

OPEN TOP

Generally 1-2% easier.

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The quality and the quantity of offering at the moment is unprecedented. All weekly market reports must take the very limited and overall poor-quality range of wool on offer into context. According to AWEX the average style of the merino fleece section in Sydney was 5.5. This means that overall style of the selection was in between and MF5 (good topmaking) and MF6 (average topmaking). This must be recognised as one of the poorest style selections for a Sydney sale. Therefor it was a significant challenge for us to quote this market comparatively.

AWEX Eastern Indicator compared with 17/04/2020

Eastern Indicator

Close: 1272

Change in % -1.55

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

Authentico Index Values

15 Micron

Close: 2418

Change in %:  -0.49

16 Micron

Close: 2144

Change in %: -0.42

17 Micron

Close: 1886

Change in %: -1.87

18 Micron

Close: 1714

Change in %: -2.0

19 Micron

Close: 1602

Change in %: -2.85

Authentico Indicator

Close: 1911

Change in %: -1.49

Forecast

Sales resume next Tuesday across all three markets.

Auction offering – current week

For the season to date up to and including week 43, we’ve seen a reduction of nearly 18% in first hand offered clean kg’s on the market. It remains a little unknown just how much wool is available in store on behalf of growers who are unwilling to offer their wool at this time or at these levels. If production is down by anywhere near this percentage and sheep breeders are tempted further towards meat sheep production while lamb prices remain strong and wool a little uncertain, then this unofficial grower stockpile must surely be a valuable asset for the industry. It’s a difficult period but before Covid-19, the outlook for wool as a sustainable natural fibre was very good. It will return.

Market          Sale          Offered             Sold       Passed In

North                      S 43                     4696                         4067                13.4%

South                     M 43                    15019                        12590              16.2%

West                       F 43                      5259                         4530                13.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 44                         W                              5406

South                     M 44                       T-W                           14021

West                       F 44                        T-W                            6127

 

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

The Schneider Group joins the Science Based Target initiative

Commitment to set company-wide emission targets in line with climate science

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.

The environment and Covid-19

The Schneider Group’s Science Based Targets initiative commitment has been officially announced on the initiative’s website in mid-April 2020 while the whole world is still battling with the  Covid-19 pandemic. The Schneider Group and its employees around the world have also been impacted by the pandemic and it is yet to be seen how and when we will jointly emerge from this global spanning crisis. 

Nevertheless, even in these socially and financially difficult times, it is important to not forget the third equation of the triple bottom line of a business: the environment. Ironically during the Covid-19 pandemic, carbon emissions are low as travel and production have been extremely restricted. Immediately we see positive effects for the environment as for the first time in over 30 years it is possible to view the Himalayas in plain sight. 

More than ever, it is clear that the industry, including the wool industry, needs to find solutions to create a high level of economic value with a low output of carbon emissions and high attention in animal welfare to ensure economic and social stability within society while also ensuring a healthy planet for our society to live on. 

This is why even in these severe times, it is important for businesses to continue working on setting and implementing targets to lower their carbon emissions. This is the only way to ensure that together we reach the international goal to limit global warming to 2 degrees C to avoid the most dangerous consequences of climate change. The Science Based Targets initiative’s Sectoral Decarbonisation Approach helps determine how much a company needs to cut its own emissions in order to contribute to the goal. By joining the Science Based Targets initiative, The Schneider Group is doing its part to battle Climate Change.  

As society settles into a new normal with the virus Covid-19 being a part of it we also have the opportunity to change how we live, play and work for the better of us and our planet. 

Why have we committed to set a science-based target (rather than another target)?

Over the past years, we educated ourselves, connected with relevant organisations and established internal structures in order to continue challenging ourselves to reduce our own company-wide footprint. Through this process, we identified that science-based targets are the most demanding, precise and measurable target setting tools available. We wanted to hold ourselves accountable to the most serious and relevant sustainability credentials any company could aim for. We also wanted to leave no room for green-washing and not leave a backdoor open to wiggle ourselves out when things get hard. 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. 

Why is taking climate action important to The Schneider Group? 

At The Schneider Group, we source, process and supply wool and natural fibres to assist our customers in producing sustainable, fully traceable, high-quality products. We believe in a future where all wool and other animal fibres are sustainable, ethically sourced and traceable. This is why we made sustainability a strategic priority for all our activities and are continuously investing in the following strategic areas: Raising animal welfare standards, reducing carbon emissions and overall impact; and applying traceable technology.

Our commitment to the Science Based Target initiative falls of course under the strategic area of reducing carbon emissions and overall impact.  

What benefits do we anticipate after setting a science-based target?

The first most important benefit of setting science-based targets is that it enables us to actually achieve our vision of a future where all wool and other animal fibres are sustainable, ethically sourced and traceable. In addition, science-based targets will help us identify exactly where we are in our journey of achieving our vision and what the next steps are that we must take. It will help us anticipate possible threats on the road and help us innovate together with all supply chain partners involved to find solutions on how we can turn these threats into opportunities. These opportunities will be good for the planet as well as for all supply chain partners involved.  Through our own Authentico Integrity Scheme, we already have a system in place that will let us work closely with woolgrowers and brokers on achieving the set targets. Last but not least we hope that we can set an example and inspire other companies to join us on this journey. 

What do we think the challenges might be and how do we plan to overcome them?

Challenges we anticipate revolve around the reduction of carbon emissions at scope 3 of our supply chain, meaning our suppliers; which are the growers around the world. We already know from conducting a Life Cycle Assessment that carbon emissions at the farming stage will be a challenge that we cannot tackle on our own. This is why we are already engaging ourselves in the global wool community of carbon emission professionals looking at this stage of the wool supply chain. In addition, we will be working directly with wool growers through our Authentico Integrity Scheme in order to work on solutions on how to reduce carbon emissions jointly. 

For more information about Science Based Targets initiative visit https://sciencebasedtargets.org/

 

FREMANTLE MARKET REPORT

COMMENT

Fleece 5-10 cents cheaper, skirtings unchanged and open tops 15 cents cheaper.

FLEECE

The fleece market eased slightly again today, with 19.5u and broader drifting by around 5-10 cents. There was strong demand for best style 18.5u and finer fleece which saw prices 5-10 cents dearer.

Fleece had a passed-in rate of 11.2%.

SKIRTINGS

Skirtings were generally unchanged, with good demand for 18.0u and finer lots.

OPEN TOP

19.5u and broader open tops fell by 15 cents, while finer microns were firm on a limited offering today.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market relatively firm, all things considered, in a small offering.

COMMENT

Some small movements related to variable quality and limited supply.

FLEECE

16.5 micron a little harder to buy. Good competition in small supply.

17.0 / 19.5 micron firm unchanged

20.0 / 21.5 micron good lots remain keenly sort after. Others a little irregular generally related to yield.

SKIRTINGS

Better lots par to 1% dearer.

OPEN TOP

Fully firm.

 

EASTERN AUSTRALIAN MARKET REPORT

Good wool generally well supported at current levels.

COMMENT

Better yielding wool suitable for our usual range were in limited supply and generally unchanged.

FLEECE

15.5 / 16.0 micron tending a little dearer for the few lots on offer.

16.5 / 18.5 micron unchanged

19.0 / 20.5 micron 1% easier

21.0 / 21.5 micron unchanged in limited selection.

SKIRTINGS

Par to 1% easier with the few best lots least affected.

OPEN TOP

Nominally par to 1% easier.