FUHRMANN NZ MARKET REPORT

Summary

Market continues to rise.

Comment

North Island only offering 6,000 bales.  The selection consisted of 30% crossbred hogget fleece, 32-36 micron mainly good style, 8% crossbred fleece average to good style, 35% crossbred second shear/hogget shears bulk 75mm good colour, 19% associated oddments, 5% reoffered lambs and 3% miscellaneous types.  Keen widespread competition with most sectors operating.  Keen demand from India Sub Continent with support from China and Australasian carpet mills.

Fleece Wools

All fleece types 3% dearer.

Second Shears

Crossbred shears including hogget shears 75mm & shorter 7% dearer.

Oddments

Better style clothing oddments 10% dearer.

Combing oddments sellers favour.

Passings

4% Passed In.

Next Auction

South Island only, offering 8,000 bales, 5 November 2020.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Following the softer tone at the end of sale last week, the market opened cautiously. It was however noted that buyer competition remained very active at the lower basis. It was obvious that they wanted to buy but were clearly cautious about the price paid. The tone of the auction room was different to that experienced a few months ago. Prices did stabilise on Wednesday and finished with Fremantle on a positive note compared to their previous close.

AWEX Eastern Indicator compared with 23/10/2020

Eastern Indicator

Close: 1138

Change in % -6.64%

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

Authentico Index Values

15 Micron

Close: 2572

Change in %:  -2.39

16 Micron

Close: 2193

Change in %: -1.75

17 Micron

Close: 1885

Change in %: -4.75

18 Micron

Close: 1662

Change in %: -4.48

19 Micron

Close: 1466

Change in %: -4.56

Authentico Indicator

Close: 1907

Change in %: -3.64

Forecast

The quality of the Australian wool clip has improved significantly over the past 10 to 20 years. Australian sheep breeders and wool producers are extensively using ASBVs (Australian Sheep Breeding Values) to analyse the animals. ASBV’s are an estimate of an animal’s true breeding value based on pedigree and performance recorded information. They are essentially a projection of how that animal’s progeny will perform for a range of traits. As a result, Australian wool production has improved dramatically with producers committed to animal health with a focus on nutrition. This in turn has improved the productivity of the merino flock in Australia. There appears more nutrition in the wool, more staple length and a brighter and cleaner clip. All as a result of a strong animal welfare focus.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 18                     11488                         8159                 29.0%

South                     M 18                     16313                        11932                 26.9%

West                       F 18                       8122                         6306                  22.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 19                        W / T                        8972

South                      M 19                       W / T                       20013

West                        F 19                        W / T                        7681

 

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

EASTERN AUSTRALIAN MARKET REPORT

Market generally firm at the close.

COMMENT

Prices opened a little cautiously with recent volatility but strengthened towards the close of sale to finish generally unchanged.

FLEECE

Some slight movement either way but generally firm overall.

SKIRTINGS

16.5 / 17.0 micron 1% easier

17.5 micron and broader very firm.

OPEN TOP

Unchanged.

 

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 50-80 cents cheaper, skirtings 50-100 cents cheaper and open tops 30-80 cents chepaer.

FLEECE

The Fremantle market followed Melb/Syd and with prices generally 50-80 cents cheaper today. The finer end was the most affected, with good demand for the small offering of 20.5u and broader limiting falls to around 50 cents.

We still saw a passed-in rate for fleece of 27.9%, with over 10% of fleece offering withdrawn prior to sale.

SKIRTINGS

18.0u and finer skirtings were up to 100 cents cheaper, while broader microns were 50-60 cents cheaper.

OPEN TOP

18.5u and finer open tops were up to 100 cents cheaper, while broader microns were 30-40 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market cheaper.

COMMENT

The market opened easier with more than 40,000 bales rostered for the week. Prices did improve as the sale progressed.

FLEECE

Best fleece 17.0 / 18.0 micron 1 to 2% easier.

All others 3 to 4 % easier with tender, high mid break and low yielding wool most affected.

SKIRTINGS

Generally 4 to 5% easier

OPEN TOP

Nominally 3% easier, best length least affected

 

NEW ZEALAND MARKET REPORT

Summary

Merino market extreme.

Comment

There was another good offering of fine wools and halfbreds available this week.  After the gains seen in the Australian market over the past two week prices here increased markedly when compared to the last South Island sale and in line with Australia.  The market was well supported by a full bench of buyers.

FUHRMANN NZ MARKET REPORT

Summary

Market very strong.

Comment

South Island only offering 8,900 bales.  The selection consisted of 46% crossbred and crossbred hogget fleece, 32-36 micron mainly good/average  colour, 12% crossbred second shear/hogget shears bulk 75mm good colour, 10% associated oddments, 10% merino fleece 16-22 micron super style, 17% halfbred fleece, 23-28 micron super/good style and 5% miscellaneous types.  Keen widespread competition with most sectors operation strongly

Fleece Wools

Good colour crossbred fleece 8% dearer.

Poorer style 12% dearer.

Halfbred fleece 23-29 micron up to 20% dearer.

Merino Fleece extreme compared to last merino auction.

Second Shears

Crossbred shears including hogget shears 75/100mm & shorter up to 6.5% dearer.

Oddments

All descriptions 7% dearer.

Passings

5% Passed In.

Next Auction

North Island only, offering 6,000 bales, 29 October 2020.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Volatility continues. Tuesday this week saw the second greatest one day increase for the EMI according to AWEX reports, the largest being in September 2019. This followed with an easing in prices on Wednesday. The demand is for prompt delivery of greasy wool to China, clearly in short supply, and this is fuelling the volatility. We see this around this time of the year regularly. The uncertainty regarding the global situation is only making the situation more complicated. We are however, pleased to see the fortunes of the market improve. Good wool prices and strong livestock values will surely help to build the future of the merino industry in Australia. The finer merino types continue to be keenly sought after and the crossbred types at the other end of the scale were also in demand this week, closing at the highest point.

AWEX Eastern Indicator compared with 16/10/2020

Eastern Indicator

Close: 1219

Change in % +9.13%

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

Authentico Index Values

15 Micron

Close: 2635

Change in %:  +2.73

16 Micron

Close: 2232

Change in %: +4.49

17 Micron

Close: 1979

Change in %: +6.11

18 Micron

Close: 1740

Change in %: +4.13

19 Micron

Close: 1536

Change in %: +6.37

Authentico Indicator

Close: 1979

Change in %: +4.76

Forecast

We’ve been keenly observing the strong ram sale results in the past month. Stud breeders from across Australia have all seen greater clearance numbers and increased average prices for their stud sheep. This is a show of strength for the merino industry in Australia. It would appear that wool producers are trying to rebuild numbers in a much better season. The focus on ram selection is on quality wool and increased fertility. Surplus sheep and breeding stock in particular are extremely valuable and if current wool prices are sustainable, which we hope they are, this will help to stabilise supply for the next couple of years.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 17                      8122                         7929                  2.4%

South                     M 17                     15674                       14903                 4.9%

West                       F 17                       9278                         8261                 11.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 18                        T / W                        12122

South                      M 18                       T / W                       20994

West                        F 18                        T / W                       10888

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally 60-90 cents cheaper, skirtings 60-70 cents cheaper and open tops 50-75 cents cheaper.

FLEECE

The Fremantle market fell heavily today with prices generally 60-90 cents cheaper. 18.5u and finer were the most affected. The market seemed to find its level and held to the end of the sale without falling away further.

The passed-in rate for fleece was 32.7%.

SKIRTINGS

Skirtings were generally 60-70 cents cheaper.

OPEN TOP

Open tops were generally 50-75 cents cheaper on a limited selection.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market settles.

COMMENT

Market 2 to 3% easier but remained well supported at the basis. Best fine wool least affected.

FLEECE

Best 18.0 micron and finer 2% easier.

All others 3% easier.

SKIRTINGS

17.5 micron and finer 3% easier

18.0 / 18.5 micron generally unchanged

19.0/19.5 micron par to 1% dearer

OPEN TOP

18.5 micron and finer fully firm

19.5 micron 2% easier