EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Best style well supported. Inferior style irregular in good competition.

FLEECE

18.5 micron and finer par to 1% cheaper.

19 to 21.5 micron 1-2% cheaper.

SKIRTINGS

All skirtings FNF were 1% dearer.

B fault 18.5 finer unchanged. 19 broader 1% cheaper.

OPEN TOP

All descriptions fully firm.

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Very welcome rain is currently falling over much of Eastern Australia including both drought and fire affected regions. They are recording good steady rain falls that is expected to last for a few days. This is extremely good news for our country friends and fire fighters alike and we wish them all well.

Added to this good news, the wool market was poised to open strongly in 2020 with expectations of a 2 to 3% improvement for Tuesday’s opening sale day. Chinese interest had improved slowly over the recess following improved trade news. In the end prices were around 4% dearer followed by a more steadying tone on Wednesday. The finer micron types, 17.0 and finer, were clearly in favor and continued to advance over both days. There were a small offering of 13.5/14.5 micron shorter length types that exceed most expectations with very strong support from both Europe and Chinese interests.

There was a concerning drop in prices late Wednesday in Fremantle with a higher passed in rate as prices lost at least half of the previous day’s gains. This led to a cautious open to Thursday in Melbourne (no sale in Sydney) but confidence improved as the sale continued. Prices finished higher than those in the last session from Fremantle on Wednesday. In the end the market closed the week around about the original expectation of about 3% dearer for 18.0 and broader while the finer microns were 4 to 6% dearer (finest most affected).

AWEX Eastern Indicator compared with 20/12/2019

Eastern Indicator

Close: 1609

Change in % +3.27

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

Authentico Index Values

15 Micron

Close: 2613

Change in %: +6.04

16 Micron

Close: 2445

Change in %: +4.48

17 Micron

Close: 2225

Change in %: +4.80

18 Micron

Close: 2098

Change in %: +3.10

19 Micron

Close: 1984

Change in %: +2.37

Authentico Indicator

Close: 2245

Change in %: +4.13

Forecast

The variability seen in the first week was not ideal but we were encouraged by the level of confidence and a more mature market on Thursday. We have a very large offering next week that perhaps spooked the buying trade on Wednesday. We remain confident that the Chinese sector needs greasy wool in the short term. The ability of the exporters to finance the clip with prompt cash payment terms was also floated as a reason for reduce activity. It was not necessarily that buyers were less willing to buy.

Auction offering – current week

Selling Centres for week 29

Market          Sale          Offered             Sold       Passed In

North                      S 29                     11,086                     10,673                  3.7%

South                     M 29                    27,393                      25,087                 8.4%

West                       F 29                      13,782                      11,029                 20.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 30                     W/T                           15,985

South                     M 30                   T/W/T                        30,297

West                       F 30                     W/T                            13,608

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece generally firm to slightly dearer, skirtings 70 cents cheaper and open tops 40-50 cents cheaper.

FLEECE

The fleece market steadied after yesterday’s volatility, with prices generally 10-15 cents dearer with better spec 19.5u and finer the most affected.
Fleece had a passed-in rate of 17.6%.

SKIRTINGS

Skirtings lost yesterday’s gains and were generally 70-80 cents cheaper.

OPEN TOP

Open tops were around 40-50 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market cheaper.

COMMENT

Good competition in a cheaper market today.

FLEECE

Ultrafine – 14.0/14.5 micron remain keenly sought after.

15.5 / 17.0 micron all par to 1% cheaper.

17.5 / 21.5 micron 3% cheaper.

SKIRTINGS

All skirtings 2% cheaper.

OPEN TOP

All descriptions 3% easier.

 

NEW ZEALAND MARKET REPORT

Summary

First South Island sale for the 2020 year.

Comment

There were practically no fine wools on offer at the first South Island sale for 2020.  The offering as dominated by crossbred wools which were generally easier/buyers favour.

FUHRMANN NZ MARKET REPORT

Summary

Market generally easier today with lambs being mixed.

Comment

North Island offering 11,500 bales and South Island offering 7,200 bales.  The selection consisted of 40% ewe and hogget fleece, 34.0 to 38.0 micron, 35% early shorn and hogget second shear, 34.0 to 38.0 micron, 15% lambs fleece, 8% associated oddments and 2% miscellaneous types.  There was widespread competition with Australasian carpet mills and Europe main and support from South East Asia and China.

Fleece Wools

Good colour crossbred fleece, buyers favour.

Poorer style crossbred fleece firm.

Good colour early shorn 2% cheaper.

Second Shears

Good Colour 2% cheaper.

Poorer style firm.

Lambs

29.0 micron & finer firm

29.5 micron and coarser up to 5% cheaper.

Oddments

All descriptions firm.

Passings

12% Passed In.

Next Auction

North Island only offering 8,000 bales 23 January.

FREMANTLE MARKET REPORT

COMMENT

Fleece generally unchanged at close, skirtings 100 cents dearer and open tops 40-50 cents dearer.

FLEECE

An incredible day in Fremantle with fleece prices opening 100-120 cents dearer at beginning of sale. By midway through the sale prices showed signs of weakening, and continued to drop to finish very close to pre-Christmas levels. As prices fell the passed-in rate rose with very little wool actually sold in the last 15 minutes.
Fleece had a passed-in rate of 25.6%.

SKIRTINGS

Skirtings were generally 100-120 cents dearer.

OPEN TOP

Open tops were around 40-50 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market generally firm.

COMMENT

Good general market around the same basis with some minor adjustments.

FLEECE

Ultrafine – 14.0/14.5 micron keenly sought after.

15.5 / 17.0 micron all 1% dearer

17.5 / 18.5 micron unchanged

19.0 / 20.0 micron buyers favour – par to 1% easier.

20.5 / 21.5 micron firm.

SKIRTINGS

Very firm.

OPEN TOP

Unchanged.

 

EASTERN AUSTRALIAN MARKET REPORT

Market advances significantly.

COMMENT

As expected, prices opened dearer across the board following the lead from South Africa last week. Steady interest from Chinese customers over the recess was the reason.

FLEECE

Opened 5% dearer but settled to be around 4% dearer across all types.

SKIRTINGS

Similar to the fleece. Closed approximately 4% dearer for better types.

OPEN TOP

Nominally 3 to 4% dearer.

 

FUHRMANN NZ MARKET REPORT

Summary

Market mixed at the beginning of the New Year.

Comment

North Island only selling, offering 9,800 bales.  The selection consisted of 35% ewe and hogget fleece, 33.0 to 38.0 micron, 40% early shorn and hogget second shear, 31.0 to 38.0 micron, 15% lambs fleece, 8% associated oddments and 2% miscellaneous types.  There was keen widespread competition with buyers competing strongly, particularly on the very good colour fleece and shears.  Australasian carpet mills and Europe main with very limited support from China.

Fleece Wools

Crossbred hogget fleece, 32.0 to 33.5 micron, small selection sellers favour.

Crossbred ewe fleece, good colour very firm.

Crossbred ewe fleece, poorer colour 4% cheaper.

Second Shears

All descriptions tending sellers favour.

Lambs

Mixed microns, very soft demand, generally 10-15% cheaper.

Oddments

Combing oddments in a small selection 5% dearer.

Clothing oddments 2% dearer.

Passings

4% Passed In.

Next Auction

North Island offering 10,800 bales, South Island offering 7,200 bales 16th January.