FUHRMANN NZ MARKET REPORT

Summary

Market relatively stable.

Comment

The New Zealand sales followed on with the first South Island offering post lockdown 7,000 bales for sale.  The selection consisted of  good/average colour ewe fleece, 34.0 to 38.0 micron, mainly good colour second shears, 35.0 to 38.0 micron and associated fleece, shear and lamb oddments.  Even with a reduced demand for most types, the auction prices remained relatively firm.  66% of growers met the market with 34% passed in.  Most of the competition was again from China and the Australasian mills, and still very little coming from Europe, United Kingdom and South East Asia.

Fleece Wools

Average colour types up to 1.5% dearer.

Second Shears

Crossbred shears tending buyers favour.

Oddments

All descriptions very firm.

Passings

34% Passed In.

Next Auction

North Island offering 7,000 bales on 4 June 2020

NEW ZEALAND MARKET REPORT

Summary

First South Island sale post lockdown.

Comment

This week saw the first wool sale in the South Island since the country went into lockdown at the end of March due to the Covid-19 virus.  The selection at this week’s sale was a reflection of wools that were available at the end of March as brokers work through the the wools that have come into their stores during the lockdown period.  As a consequence there was a larger selection of crossbred shears on offer than we would normally see at this time of year.  While the market is still trying to find a level, it was firm on last week’s sale in the North Island.  There were quite a large number of withdrawals prior to the sale and passings were 34% where wools failed to meet grower’s reserves.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Small but positive gains were seen across the whole offering this week. The clearance rate was higher as well with more than 17,000 bales sold, or 92% of the bales available. The notable factor was that all types from superfine merino to crossbred and cardings all improved by similar percentages. We are seeing a few ultrafine wools, 15.5 and finer, that are attracting good competition in small supply. The selection is also starting to improve in terms of yield and we expect discounts for low yield to reduce as the selection changes.

AWEX Eastern Indicator compared with 22/05/2020

Eastern Indicator

Close: 1170

Change in % +1.30

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

Authentico Index Values

15 Micron

Close: 2420

Change in %:  +3.42

16 Micron

Close: 2034

Change in %: -0.29

17 Micron

Close: 1769

Change in %: +1.03

18 Micron

Close: 1630

Change in %: +1.81

19 Micron

Close: 1491

Change in %: +1.50

Authentico Indicator

Close: 1818

Change in %: +1.28

Forecast

Some of the early shorn clips from the New England are now coming into store. A couple of factors will limit the supply of quality ultrafine wool that should help prices in the medium term despite the general limited interest from Europe. Tensile strength due to the change in season around February is resulting in more tender wool, with a large number of the lines with high mid break. Secondly the VM content will be completely different when compared with the past few seasons. The drought resulted in little to no VM in the clip up until now. Some early shorn clips have fleece lines approaching 1.5 to 2% vm and skirtings around 7%. A very different scenario for first stage processors like us. We should remind growers that the grass seed (shive) type VM is a very difficult to remove in the combing process and all care should be taken this year to remove the higher VM necks to reduce the impact of VM in the best fleece lines.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 48                     5429                         5216                 3.9%

South                     M 48                     9270                        8430                 9.1%

West                       F 48                      4129                         3697                10.5%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 49                        T-W                           7184

South                     M 49                        T-W                           9952

West                        F 49                        no sale

 

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

EASTERN AUSTRALIAN MARKET REPORT

Market very firm, tending slightly dearer.

COMMENT

It was a good sign to see Melbourne sale sell to a similar level to Tuesday, if not a bit better. No sale in Sydney today.

FLEECE

16.5 micron tending 1% dearer in a limited selection.

17.5 micron very firm

18.5 / 19.5 micron sellers favour

20.5 / 21.5 micron up to 2% dearer for good specification.

SKIRTINGS

1% dearer, best most affected.

OPEN TOP

Generally 1% dearer in a limited selection.

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer

COMMENT

News of new business in China late last week filtered through to the auction. All descriptions about 2% dearer.

FLEECE

Generally 2% dearer, better specification most affected. Particularly relating to yield, length and strength.

SKIRTINGS

2% dearer, best most affected.

OPEN TOP

Generally 2% dearer.

 

FUHRMANN NZ MARKET REPORT

Summary

Market cheaper post lock down.

Comment

The New Zealand sales resumed today for the first time since 19 March with the North Island only offering 7,000 bales.  The selection consisted of 10% good/average colour ewe fleece, 34.0 to 38.0 micron, 40% good colour second shears, 35.0 to 38.0 micron, 25% lambs fleece, 29.0 to 31.0 micron, 15% associated fleece, shear and lamb oddments.  Despite the heavily reduced market demand and anticipated drop in auction prices, the auction showed a good measure of resilience to keep any drop as small as possible.  Of the wool on offer 64% of growers met the market and 36% was passed in.  Most of the competition was from China and the Australasian mills, with very little coming from Europe, United Kingdom and South East Asia.

Fleece Wools

All descriptions generally 15% cheaper.

Second Shears

Crossbred shears 25% cheaper.

Lambs

All descriptions generally 20% cheaper.

Oddments

All descriptions 30% cheaper.

Passings

36% Passed In.

Next Auction

South Island offering 7,000 bales on 28 May 2020

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Best fine wool, all cardings and the crossbred types were all keenly sought after this week. The market indicators were generally easier but it’s nice to focus on these few positives this week. Good style and specification fleece wool 16.5 micron and finer remained very firm, in fact the few bales around 15.0/16.0 micron were dearer, particularly if non mulesed. This is reflected in our Authentico index’s which for the fine types, performed better than the average market. Good crossbreds were firm and the cardings were all dearer.

AWEX Eastern Indicator compared with 15/05/2020

Eastern Indicator

Close: 1155

Change in % -2.04

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

Authentico Index Values

15 Micron

Close: 2340

Change in %:  +1.97

16 Micron

Close: 2040

Change in %:  unchanged

17 Micron

Close: 1751

Change in %: -1.64

18 Micron

Close: 1601

Change in %: -1.78

19 Micron

Close: 1469

Change in %: -2.72

Authentico Indicator

Close: 1795

Change in %: -0.72

Forecast

We are often observing the cardings (locks, crutchings, stains etc) and the crossbred fleece wool move in advance of the general market. These types are usually the first to move when the market sentiment is changing. Cardings in particular are at the lowest price point for years and supply is limited. It’s a lower risk to buy the cheaper types that are in small supply. The price comparison with these types to the merino fleece and skirtings will be keenly watched now. There might be some value in the merinos around this level.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 47                     6302                         5533                12.2%

South                     M 47                    10417                         9212                11.6%

West                       F 47                      4382                         3710                15.3%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 48                         T                                5576

South                     M 48                       T-W                           10249

West                        F 48                         W                              4534

 

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

EASTERN AUSTRALIAN MARKET REPORT

Market easier, best least affected.

COMMENT

The better performing fine wool types were keenly sought after.

FLEECE

15.0/15.5 micron fleece in limited supply but in keen demand.

16.5/17.5 micron generally unchanged

18.5/21.5 micron 2% easier, again with the better specification types least affected.

SKIRTINGS

Skirtings – best lots up to 1% easier, others 1 to 2% easier.

OPEN TOP

Generally 1% easier in limited offering.

 

FREMANTLE MARKET REPORT

COMMENT

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

FLEECE

The fleece market drifted another 30 cents cheaper today. Initially better tested wools remained firm but towards the end of the day they also came back 20-30 cents.

Fleece had a passed-in rate of 15.7%.

SKIRTINGS

Skirtings were generally 30-40 cents cheaper.

OPEN TOP

17.5u and finer open tops were firm, while 18.5u and broader were 25 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Best style well supported.

COMMENT

Good competition in small volume.

FLEECE

Best style 16.5 1% dearer.

Best style 175/195 micron 1% easier.

Best style 20/215 micron unchanged.

Good/Ave style par to 1% easier.

Low yielding wool under 60% still heavily discounted.

SKIRTINGS

Best style FNF 1% easier.

B/C fault 1% easier.

OPEN TOP

Generally 1-2% dearer in limited offering.