NEW ZEALAND MARKET REPORT

Summary

Market continues to align with Australian levels.

Comment

The South Island auction this week featured the beginning of mid-micron wools on offer and also a selection of early shorn merino wools and crutchings.  However the offering was again affected by a large number of lots withdrawn prior to the sale or passed in for failing to meet grower reserves as the market continues to show downward momentum and maintains levels similar to those seen in Australia.

FUHRMANN NZ MARKET REPORT

Summary

Market generally eases.

Comment

North Island offered 7,600 bales and South Island offered 8,300 bales today.  The selection consisted of 65% good/average colour crossbred second shear and fleece wool, 34.0 to 38.0 micron, 10% end of season lambs, generally average colour with some good colour in the South Island, 10% new season halfbred fleece good colour and the balance made up of associated fleece, shears and lamb oddments, mostly average/poor colour.  The combined North Island and South Island auctions started on a softer note with most crossbred types struggling to remain firm from last weeks levels.  However the sale finished with crossbred fleece and shears, buyers favour and good colour shears remaining firm.  Crossbed hoggets dropped 2%, but oddments bucked the trend and increased 1%.  The first offering of halfbred fleeces came right back in line with the current Australian auction prices.  This resulted in a number of growers anticipating the drop and withdrawing prior to the start of the day or generally passing their lines in.  Again competition was limited to Europe and China, but well supported by the Australasian mills and the Sub-Continent.

Fleece Wools

Crossbred fleece buyers favour.

Crossbred hoggets down 2%

Second Shears

Crossbred shears buyers favour.

Good colour shears firm.

Oddments

All descriptions up to 1% dearer.

Passings

13% Passed In.

Next Auction

New season – South Island offering 6,900 bales on 2 July 2020.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market closed on a positive tone for the 2019 wool selling season. After a general easing of prices across the board on Tuesday, there was more widespread interest at Wednesday’s auction with most descriptions tending slightly dearer. This was a good result under the circumstances. Almost 25,000 bales were sold to the trade to the value of M$31.8.

There were a few nice ultrafine clips that offered some good quality 14.0/14.5 micron bales in Melbourne and these were a clear standout. Competition was very strong and these bales sold to levels similar to those pre Covid-19. Carding types which have seen the greatest competition in recent weeks, were the types that suffered the most this week. Clearly it has been a lack of supply in these types that was the key driver on price.

AWEX Eastern Indicator compared with 19/06/2020

Eastern Indicator

Close: 1110

Change in % -2.54

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

Authentico Index Values

15 Micron

Close: 2392

Change in %:  -0.95

16 Micron

Close: 1975

Change in %: -1.29

17 Micron

Close: 1739

Change in %: +1.05

18 Micron

Close: 1528

Change in %: -1.99

19 Micron

Close: 1414

Change in %: -1.19

Authentico Indicator

Close: 1756

Change in %: -0.73

Forecast

The AWEX EMI has closed 35% lower when compared to this time last year. Our Authentico Indicator based on good performing NM and CM compliant merino clips is 21% lower for the year. The superfine end, particularly 15.0 micron have not been as greatly affected and closed around about similar levels compared to 12 months prior and has had a positive impacted on our Index. The 19.0 micron Authentico Index value on the other hand is 34% lower, more in line with the EMI. Sales continue next week with sale 01 of the new selling season and approximately 31,000 bales available. The auction will be held Wednesday and Thursday to coincide with the new financial year.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 52                     7176                         6448                10.1%

South                     M 52                    14618                       12868               12.0%

West                       F 52                      6235                         5488                12.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 01                        W/T                           9677

South                     M 01                        W/T                          14291

West                        F 01                        W/T                           7104

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally unchanged, skirtings 20-30 cents cheaper and open tops 25 cents cheaper.

FLEECE

The fleece market was generally unchanged today. Good spec fleece again attracted good demand and finished 5-10 cents dearer. Overall the market finished on a strong note, tending dearer at the close.

Fleece had a passed-in rate of 10.9%.

SKIRTINGS

Skirtings were generally 20-30 cents cheaper.

OPEN TOP

Open tops were generally 25 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Improved market tone.

COMMENT

More sustained and broader market competition.

FLEECE

Up to 1% dearer for all descriptions

SKIRTINGS

17.5 micron and finer generally 1% easier, best least affected.

18.0 micron and broader generally unchanged.

OPEN TOP

18.0 micron and finer 1% easier

18.5 and broader par to 1% dearer.

 

FREMANTLE MARKET REPORT

COMMENT

Fleece 70-90 cents cheaper, skirtings 40-50 cents cheaper and open tops 50-70 cents cheaper.

FLEECE

The fleece market followed Melb/Sydney and opened 70-90 cents cheaper today.  High yielding fleece wools continued to attract good support and attracted premiums of 30-40 cents. The main buyers were Techwool, PJ Morris and Tianyu.

Fleece had a passed-in rate of 13.8%.

SKIRTINGS

Skirtings were generally 40-50 cents cheaper.

OPEN TOP

Open tops were generally 50-70 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market around 2% easier

COMMENT

A little over 10% passed in. The market opened easier but was well maintained at the lower level. There was reasonably good competition at the new basis.

FLEECE

Generally 2% easier across the board.

SKIRTINGS

2% easier.

OPEN TOP

Nominally 2% easier.

 

FUHRMANN NZ MARKET REPORT

Summary

Market fully firm by the end of the sale.

Comment

North Island only offering 7,600 bales today.  The selection consisted of 60% good/average second shear and early shorn fleece 34.0 to 38.0 micron, 10% good/average colour fleece wool, 35.0 micron & coarser, 15% end of season lambs, generally average colour with the balance consisting of associated fleece, shears and lamb oddments, mostly average/poor colour.  This week’s auction started slowly on the crossbred shears and early shorn fleeces with an early dip in the market, however as the auction progressed, buyers started to compete strongly and the market finished the day fully firm on last weeks levels.  The majority of growers opted to meet the market with only 4% passed in.  China and Europe were the main buyers with good support from local/Australasian  mills and the Sub-Continent.

Fleece Wools

Small selection in demand, finishing firm.

Second Shears

Finished fully firm.

Oddments

All descriptions sellers favour.

Passings

4% Passed In.

Next Auction

North Island offering 9,000 bales and South Island offering 8,400 bales on 25 June 2020.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Our Authentico index value reached a new low this week closing at 1769. Premiums for NM are not as they have been with Chinese interests dominating and the European market remaining quiet. With only 15,000 bales available nationally, the market struggled to gain any momentum. The main focus is still on the knitting types, carding types and all better performing fine fleece wool. The finer knitting types were even a little dearer on Wednesday. All in all it must be considered a disappointing sale week.

AWEX Eastern Indicator compared with 12/06/2020

Eastern Indicator

Close: 1139

Change in % -2.73

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

Authentico Index Values

15 Micron

Close: 2415

Change in %:  -3.05

16 Micron

Close: 2001

Change in %: -0.99

17 Micron

Close: 1721

Change in %: -2.33

18 Micron

Close: 1559

Change in %: -2.74

19 Micron

Close: 1431

Change in %: -3.64

Authentico Indicator

Close: 1769

Change in %: -2.32

Forecast

The AWEX national weekly report noted that the EMI is at the lowest point since 2015. This is a dramatic change after 3 very positive years for wool. We must focus on wools environmental credentials to rebuild trust with the consumer. For those who have not seen it, we recommend watching the recent speech from Giovanni Schneider, CEO of the Schneider Group. Giovanni spoke at the recent digitally held IWTO conference. His speech can be found in the resources section of our website via this link.  https://www.gschneider.com/resources/

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 51                     6693                         5945                11.2%

South                     M 51                     9107                         8201                 9.9%

West                       F 51                     no sale

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 52                        T/W                            7160

South                     M 52                        T/W                           15900

West                        F 52                        T/W                            7180

 

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

EASTERN AUSTRALIAN MARKET REPORT

Market a little easier.

COMMENT

Approximately 13% passed in. Some more interest in superfine types.

FLEECE

16.5 micron 1% dearer

17.0 / 18.0 micron best firm, average 1% easier, inferior 1% dearer

18.5 / 20.5 micron 1% easier

21.0 / 21.5 micron firm

SKIRTINGS

18.0 micron and finer better skirtings fully firm

OPEN TOP

Nominally 1% easier.