AUSTRALIAN WEEKLY MARKET REPORT

Comment

After several weeks of negative territory for the wool market we saw a glimmer of hope this week returning into positive territory for most merino types. Best style and strength, high yielding wool were very well supported, with low yielding low strength high mid break wool carrying significant discount. Grower resistance still evident with a slightly higher passed and withdrawn rate this week. The continuation of staggered selling mechanisms should help the market recover over an extended period of time, we just need to be patient and all sectors of the industry work together for the best outcomes.

AWEX Eastern Indicator compared with 01/05/2020

Eastern Indicator

Close: 1179

Change in % +0.76

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

Authentico Index Values

15 Micron

Close: 2294

Change in %:  -0.48

16 Micron

Close: 2040

Change in %: -0.49

17 Micron

Close: 1770

Change in %: -1.56

18 Micron

Close: 1630

Change in %: +0.74

19 Micron

Close: 1510

Change in %: +1.48

Authentico Indicator

Close: 1808

Change in %: -0.33

Forecast

The coming weeks see similar sized sales around 20/22,000 bales on offer. The global situation remains relatively unchanged, with currencies showing some volatility. Shifts in the wool market will mostly relate to shipping times and cut-offs as we progress over the next few weeks. Political posturing will also influence commodity prices as we wait and see the impact from China in the coming weeks and months. Globally the world textile industry has lost confidence so we all need to keep a level head to ensure safe passage out of an extreme situation. We need true leadership from our industry heads to take us forward into a new age of wool production, wool processing and retailing for the future.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 46                     6078                         5788                4.8%

South                     M 46                    12593                        11163               11.4%

West                       F 46                      4700                          4364               7.1%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 47                         W                               6672

South                     M 47                       T-W                           10404

West                        F 47                         T                               4614

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece up to 30 cents dearer, skirtings firm and open tops 25-50 cents dearer.

FLEECE

The fleece market saw rises of 30-40 cents for better tested 19.5u and finer. Broader and lower yielding wools slid back around 20 cents.

Fleece had a passed-in rate of 7.2%.

SKIRTINGS

Skirtings were generally firm compared to last week.

OPEN TOP

Open tops were 20-50 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Best style well supported.

COMMENT

Good competition in small volume.

FLEECE

Best style 17.0 / 19.5 micron firm.

Best style 20/21.5 micron 1% easier.

Good/Ave style par to 1% easier.

Low yielding wool under 60% still heavily discounted.

SKIRTINGS

Best style FNF very firm.

B/C fault 1% easier.

OPEN TOP

Nominally unchanged in limited.

 

EASTERN AUSTRALIAN MARKET REPORT

Market seems to have found a level.

COMMENT

Good competition in small volume, helps turn market in positive territory.

FLEECE

Best style 17.0 / 19.5 micron 2-3% dearer.

Best style 20/21.5 micron 1-2% dearer.

Good/Ave style par to 1% dearer.

Low yielding wool under 60% still heavily discounted.

SKIRTINGS

Best style FNF 1-2% dearer.

OPEN TOP

Nominally unchanged in limited.

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was another disappointing week for the Australian wool market. There were 20,000 bales sold to the trade for a value of just under M$26. The selection remains very poor and more than half of the normal greasy wool supply chain are not able to buy for various economic reasons. It seems that the 25,000 bales we are offering per week of such quality is still too much for the market to handle in these uncertain times. We would think a national volume of between 15,000 and 20,000 bales per week would be a figure more easily absorbed considering the current level of demand. This would provide the market a greater chance of stability.

AWEX Eastern Indicator compared with 01/05/2020

Eastern Indicator

Close: 1170

Change in % -4.49

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

Authentico Index Values

15 Micron

Close: 2305

Change in %:  -3.52

16 Micron

Close: 2050

Change in %: -3.71

17 Micron

Close: 1798

Change in %: -2.18

18 Micron

Close: 1618

Change in %: -3.29

19 Micron

Close: 1488

Change in %: -4.86

Authentico Indicator

Close: 1814

Change in %: -3.20

Forecast

Many of our clients are demanding wool from farms that no longer mules (NM or CM). Our Authentico Indicators and the Authentico Index values are derived from these farms and relate to good performing fleece wool. Since week 40 after the significant fall in the market (WK39), the Authentico Index value has eased by 5.6% which paints a less dramatic picture than what we might perceive by reading the general market reports and indicators. The real picture is that good performing NM/CM wool clips are attracting more general competition week in and week out. All things considered, this is giving those growers assurance that in tough times, they might be better placed to get through these circumstances.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 45                     5526                         4522                18.2%

South                     M 45                    15466                        12611               18.5%

West                       F 45                      4346                         3528               18.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 46                         T                               6209

South                     M 46                       T-W                           13994

West                        F 46                         W                              5457

 

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

EASTERN AUSTRALIAN MARKET REPORT

Market is still looking for some direction.

COMMENT

Limited competition. Buyers unable to consume the small volume on offer.

FLEECE

17.0 / 19.5 micron better lots 2% easier

17.0 / 19.5 average lots 3% easier

20.5 micron 1% easier

21.5 micron generally unchanged in a limited offering.

SKIRTINGS

Better skirtings sold in buyers favour, others 1% easier.

OPEN TOP

Nominally unchanged in limited.

 

The Quest for Organic Lanolin

Managing Director Ralf Kunert of Naturamus explains what can be achieved when creating partnerships across industries.

One of the by-products of scouring (washing) wool is wool grease, which is refined into lanolin. Lanolin is an important raw material for the cosmetics and pharmaceutical industry as it forms the basis for lipsticks and creams.

Naturamus specializes in sourcing natural organic raw materials such as lanolin. Naturamus is part of WALA, a German-based company in the natural cosmetics and pharmaceutical industry founded in 1935.

Cross-industry collaboration

In 2016, Naturamus partnered with our business Fuhrmann Argentina to create an innovative product that had never existed before: Organic Lanolin. Both partners brought different expertise to the table. Naturamus offered insights from the consumer market and the requirements of the cosmetic industry and Fuhrmann Argentina had the organic on-farm and processing expertise.

We talked to Naturamus Managing Director Ralf Kunert about his mission of sourcing organic raw materials and the partnership with our business Fuhrmann Argentina.

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Going above the highest standards

The partnership and direct dialogue between Fuhrmann Argentina and Naturamus enabled the Fuhrmann team to identify exactly what could be done in order to meet the high requirements of the organic cosmetic industry from the farm stage. While the Fuhrmann managed farms as well as the mill, both meet all the GOTS organic standard requirements for primary production and wool processing, the small concentrated amounts of chemicals still contained in the wool grease were above the accepted level for an organic lanolin product destined for skincare products. The challenge for the Fuhrmann Argentina team was, therefore, to identify which processes within the wool production could be changed in such a way that animal welfare and quality standards could still be met while also reducing allowed chemical traces in the organic lanolin product.

On-farm, the identified solution lay in doing the routine health checks at a different point in time of the year or even avoiding the use of certain drugs approved by the organic standard of primary production. This change in animal welfare management ensures that chemical traces vanish from the lanolin when the wool is shorn and the sheep can stay healthy as always.
In the mill, improvements were made in the way wool lots were separated into different lots for processing to ensure the organic lanolin stays pure.

Once the lanolin leaves the Fuhrmann Argentina mill, it is sent to a refining mill Inquimec in Buenos Aires for filtering and purifying. Based on the collaboration, Inquimec refining mill also achieved the certification of organic status in its process. It is as far as we know, the only company in the world that has certified this organic process.
From Argentina, the lanolin is shipped to Naturamus in Germany where it gets filtered one additional time. The final result is a 100% organic lanolin product ready to create the most natural cosmetic products the world has to offer.

EASTERN AUSTRALIAN MARKET REPORT

Market cheaper. Passed In 19%.

COMMENT

Best style/strength finer merino types least affected.

FLEECE

Best style 18.5 micron and finer generally unchanged in a limited selection.

19 / 19.5 micron 2% easier

20.5 / 21.5 micron 2-3% easier, broadest end most affected.

SKIRTINGS

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

OPEN TOP

Nominally unchanged in limited.