AUSTRALIAN WEEKLY MARKET REPORT

Comment

The focus shifted to the finer micron types this week and in particular the shorter knitting types. Tender fleece, prems and good pieces 17.5 micron and finer all performed particularly well, dominated by Chinese interests. The market was expected to settle a little this week with reports of not a lot of interest around the closing levels from last week. However the market performed better than most would have predicted, particularly the finer types.

AWEX Eastern Indicator compared with 25/09/2020

Eastern Indicator

Close: 996

Change in % -3.86

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

Authentico Index Values

15 Micron

Close: 2316

Change in %:  -0.17

16 Micron

Close: 1955

Change in %: -1.11

17 Micron

Close: 1726

Change in %: -0.75

18 Micron

Close: 1501

Change in %: -2.85

19 Micron

Close: 1301

Change in %: -3.63

Authentico Indicator

Close: 1721

Change in %: -1.54

Forecast

We look forward to having many of you join the Wool Connect conference next week. https://woolconnect.gschneider.com/ For those interested but not already registered, please follow this link.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 14                      7903                         6914                  12.5%

South                     M 14                     16074                       12955                 19.4%

West                       F 14                       5325                         4039                 24.2%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 15                        T / W                         8584

South                      M 15                       T / W                        19306

West                        F 15                        T / W                        6560

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 10-30 cents cheaper, skirtings 10 cents dearer and open tops generally 10-20 cents cheaper.

FLEECE

The fleece market eased again today, with the fine end falling 10 cents, and 19.0u and broader off 20-30 cents. The sale finished on a strong note on the back of a very small offering and reasonably high passed-in rate.

The passed-in rate for fleece today was 28.0%.

SKIRTINGS

Skirtings were generally 10 cents dearer.

OPEN TOP

Open tops were generally 10-20 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market a little easier again. Fine wool least affected.

COMMENT

Fine tender fleece and good pieces keenly sought after.

FLEECE

All tender fleece and prems fully firm

Good to best fleece 18.0 micron and finer 1% easier

18.5/20.0 micron 2% easier

20.5/21.5 micron 3% easier

SKIRTINGS

17.5 micron and finer fully firm

18.0/20.0 micron 2 to 3% easier

OPEN TOP

Nominally unchanged.

FREMANTLE MARKET REPORT

COMMENT

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

FLEECE

The fleece market eased today by around 30-40 cents with the broader end most affected. The sale finished on a strong note with some pockets firming towards the end – 19-5.-20.5u and all low cvh wools.

The passed-in rate for fleece today was 34.7%.

SKIRTINGS

Skirtings were generally 50 cents cheaper.

OPEN TOP

Open tops were generally 20-40 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market easier but a stronger market tone than expected.

COMMENT

Fine wool in particular were keenly sought after in limited supply.

FLEECE

17.5 micron and finer unchanged

18.0/18.5 micron 1% easier

19.0/19.5 micron 2% easier

20.0/21.5 micron 3% easier

SKIRTINGS

17.5 micron and finer 1% easier

18.0/20.0 micron 1 to 2% easier

OPEN TOP

Nominally 1% easier

NEW ZEALAND MARKET REPORT

Summary

Merino market rises.

Comment

The South Island had another good offering of fine wools and halfbreds this week with some good quality clips available.  The market followed the same upward trend seen in Australia over the past two weeks with gains of up 10% over most microns with 18.0 micron experiencing even greater gains when compared to the last Christchurch sale.  Substantial gains were also seen across oddments types also in the region of 10%.  Halfbred types also enjoyed a rise in the market with some types increasing by up to 10%.

FUHRMANN NZ MARKET REPORT

Summary

Market rises.

Comment

South Island only offering 10,170 bales.  The selection consisted of 45% crossbred and hogget fleece wool, mainly good/average colour, 10% crossbred second shear 75/100mm and shorter good colour, 10% halfbred fleece good style 22.0 to 29.0 micron good style, 8% merino fleece, 16.0 to 21.0 micron super style, 15% associated oddments and 5% miscellaneous types.  Keen widespread competition with the Indian Subcontinent and Australasian carpet mills main with support from the Continent, China and United Kingdom.

Fleece Wools

Good colour crossbred fleece 5% dearer.

Average/poor style crossbred fleece 2.5% dearer.

Merino fleece up to 20% dearer.

Halfbred fleece 15% dearer.

Second Shears

75/100mm & shorter sellers favour.

Oddments

All descriptions 4% dearer.

Passings

7% Passed In.

Next Auction

North Island only, offering 6,400 bales, 1 October 2020.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The last two weeks have seen a significant change in market sentiment. As we said a few weeks ago, the price then was not a true reflection on the value of wool. It was more a reflection of the circumstances that the global economy is in. Wool production in Australia remains at a 100-year low and prices have been at least 40% lower than the same time last year. Simple supply and demand economics will eventually result in a more positive market outcome. We presume that has been the reason for the quick turnaround. The industry is now smaller than ever and market reactions are expected to be quicker and more volatile. Most had stood and watched while outlook remained uncertain. That has been understandable. Eventually however, the low prices and a fear of missing out has resulted in a rush on business for prompt shipment with the Chinese market dominating.

AWEX Eastern Indicator compared with 18/09/2020

Eastern Indicator

Close: 1036

Change in % +10.57

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

Authentico Index Values

15 Micron

Close: 2320

Change in %:  +6.13

16 Micron

Close: 1977

Change in %: +6.92

17 Micron

Close: 1739

Change in %: +6.23

18 Micron

Close: 1545

Change in %: +6.63

19 Micron

Close: 1350

Change in %: +9.85

Authentico Indicator

Close: 1748

Change in %: +6.78

Forecast

Not a lot has changed with regards to the global retail and consumer confidence situation. We expect some volatility in the short term will continue. It’s not uncommon at this time of the season. However, growers have shown a strong resistance to sell at the low levels and despite the improved market, not all will be prepared to sell yet. This will limit the volume available and the recent low levels are now unlikely to return.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 13                      6720                         6554                  2.5%

South                     M 13                     11384                       11183                   1.8%

West                       F 13                       5156                         4904                   4.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 14                        T / W                         8002

South                      M 14                       T / W                         19149

West                        F 14                        T / W                         6088

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 100-130 cents dearer, skirtings 120-14 cents dearer and open tops generally 40-60 cents dearer.

FLEECE

The fleece market followed eastern states and saw prices rise 100-130 cents compared to last week. 19.0u and finer best spec fleece was the most affected. Towards the end of the sale average style 20.0u and broader fleece eased back 10 cents from highs earlier. There was good competition among the exporters today.

The passed-in rate for fleece today was 5.8%.

SKIRTINGS

Skirtings were generally 100-140 cents dearer.

OPEN TOP

Open tops were generally 40-60 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market continues upward strongly.

COMMENT

All types and descriptions dearer. A very small percentage passed in today.

FLEECE

21.5 micron and finer 3% dearer

SKIRTINGS

4 to 5% dearer

OPEN TOP

Nominally 3 to 4% dearer