AUSTRALIAN WEEKLY MARKET REPORT

Comment

There was little movement in the market this week. Prices were a little exposed to the movement in currency but there was enough demand to help sustain the market in AUD at around similar levels to last week. There was good interest again for best superfine fleece and in particular those 16.5 micron and finer.

AWEX Eastern Indicator compared with 26/02/2021

Eastern Indicator

Close: 1310

Change in % +0.3

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

Authentico Index Values

15 Micron

Close: 3229

Change in %:  +1.73

16 Micron

Close: 2606

Change in %: +1.64

17 Micron

Close: 2256

Change in %: -2.51

18 Micron

Close: 1952

Change in %: -1.06

19 Micron

Close: 1729

Change in %: +0.12

Authentico Indicator

Close: 2279

Change in %: -0.44

Forecast

We have just under 50,000 bales on offer again next week. According to AWEX reports, we’ve seen an increase of 10% in first hand offered bales so far this season (since July) compared to the previous year. Considering the general circumstances and the reduction in nation production over the same period, the market has performed exceptionally well over this period.

The auction will be held on Wednesday and Thursday next week due to a public holiday on Monday.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 36                     12350                      11220                9.1%

South                     M 36                     24396                     22386               8.2%

West                       F 36                       9798                        8593               12.3%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 37                      W- T                          13502

South                     M 37                     W – T                         26533

West                       F 37                      W – T                          9848

 

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

EASTERN AUSTRALIAN MARKET REPORT

A good market considering the large and generally deteriorating quality offering.

COMMENT

Best style/strength remain keenly sought.

FLEECE

Best 17.0 / 18.5 micron fully firm tending dearer

Best 19.0 / 21.5 micron sellers favor.

Good/Ave style generally 1% easier.

SKIRTINGS

All Best FNF skirtings par to 1% dearer.

Others Irregular

OPEN TOP

1% dearer

NEW ZEALAND MARKET REPORT

Summary

Market continues to strengthen.

Comment

North Island only offering this week with 10,500 bales available.  The selection consisted of 30% crossbred fleece, mainly average style 3/5″, 4/6″, 25% crossbred second shears average/good style bulk 3″, 30% lambs mainly good style 2/3″ and 15% associated oddments.  The market continued its strong upward trend with good demand from China/Australasian carpet mills.  Lambs look cheap for the micron with Chinese and European buyers active.  Good support from the Indian Sub Continent.  A good clearance of wool.

Fleece

Better style firm.

Poorer style 7.5% dearer.

Shears

Better style sellers favour.

Poorer style 10% dearer.

Lambs

Lambs 10% dearer.

Oddments

Combing oddments sellers favour.

Clothing oddments 8% dearer.

Passings

1.5% Passed In.

Next Auction

South Island only offering 8,700 bales on 11th March.

FREMANTLE MARKET REPORT

COMMENT

Fleece unchanged, and skirtings 10-20c cheaper, and open tops unchanged.

FLEECES

Fleece prices were mixed again today, with better spec wools in demand and finishing unchanged. Low yielding fleece was a further 20 cents cheaper.

The passed-in rate for fleece was 15.9%.

SKIRTINGS

Low vm skirtings were unchanged, while poorer skirtings finished the day around 20-30 cents cheaper.

OPEN TOP

Open tops were generally unchanged today.

 

 

EASTERN AUSTRALIAN MARKET REPORT

A good market considering the large and generally deteriorating quality offering.

COMMENT

Despite the strength of the A$ the market continues in a positive manner.

FLEECE

Best 16.5 micron and finer 1% dearer

All 17.0 / 18.5 micron fully firm

19.0 / 21.5 micron par to 1% dearer.

SKIRTINGS

All FNF skirtings fully firm.

Others Irregular

OPEN TOP

1% dearer

EASTERN AUSTRALIAN MARKET REPORT

A good market considering the large and generally deteriorating quality offering.

COMMENT

The market was trending dearer towards the close, especially fleece wool 19.5 micron and broader.

FLEECE

Best 16.5 micron and finer 1% dearer

All 17.0 / 18.5 micron fully firm

19.0 / 19.5 micron sellers favour

20.0 / 21.5 micron up to 1% dearer

SKIRTINGS

Few best 17.5 micron and finer slightly easier

18.0 / 18.5 micron 1% dearer

19.0 / 19.5 micron fully firm

OPEN TOP

1% dearer

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The Australian dollar has risen by about 5 cents against the USD in the month of February. The Australian dollar is heavily influenced by commodity prices and with iron ore prices surging, the Australian dollar has moved upwards with it. Added to this are signs that the Australian economy is improving.

The AUD strength against the USD was eventually too much for wool prices to sustain. After initially absorbing the currency movement to record an overall increase in USD terms on Tuesday, the market settled over the next two days as interest from our main trade partner in wool, China, was more subdued. As the market eased, the percentage of growers willing to hold their wool for another day increased. With exceptional seasonal conditions and the strength of all other farm commodity prices, growers are more prepared to hold their wool now than they’ve ever been.

Best style and strength NM wool around 17.0 / 18.0 micron was well supported this week by Italian interests in the last reasonable offering of the season. They closed generally firm for the week and have had a positive influence on our Authentico index’s accordingly.

AWEX Eastern Indicator compared with 19/02/2021

Eastern Indicator

Close: 1306

Change in % -0.91

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

Authentico Index Values

15 Micron

Close: 3174

Change in %:  -2.43

16 Micron

Close: 2564

Change in %: -2.36

17 Micron

Close: 2314

Change in %: +1.80

18 Micron

Close: 1973

Change in %: +0.10

19 Micron

Close: 1727

Change in %: -0.69

Authentico Indicator

Close: 2289

Change in %: -0.39

Forecast

We’ve now seen the last of the usual fine wool sales. We expect as we move towards our autumn, that VM will continue to increase and staple strength could be lower. Any drought affected wool that we are now seeing in the eastern markets is wool that has been held by growers since 2020. These will at least have low VM and could help to offset the increase in VM expected from the freshly shorn clips. As a result of this change in supply that’s expected, we’re likely to see interest in the better specification wools sustained while the discount to the inferior types might increase.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 35                      13221                      11227                15.1%

South                     M 35                     26073                     22355               14.3%

West                       F 35                      10844                      7326                32.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 36                      T – W                          12715

South                     M 36                   T – W – T                      27852

West                       F 36                      W – T                           9968

 

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

EASTERN AUSTRALIAN MARKET REPORT

Market easier, better lots least affected.

COMMENT

The market tightened a little towards the end of sale as the high passed in rate limited the volume available for sale.

FLEECE

Fine wool most affected. All best descriptions 1% easier, average and inferior wools were 1 to 2% easier.

SKIRTINGS

Up to 1% easier.

OPEN TOP

Slightly easier in a limited selection.

NEW ZEALAND MARKET REPORT

Summary

Market dearer.

Comment

South Island only offering 8,570 bales.  The selection was 40% fleece, 11% shears/hoggets, 12% lambs and 14% associated oddments.  There was also 10% halfbred fleece, 3% halfbred hogget, 7% merino and hogget fleece and 3% merino oddments.  Once again prices increased on the back of the previous weeks levels with all sectors operating.  The good colour fleece was particularly sought after.  The main competition was from the United Kingdom, Europe and China with support from the Sub Continent and local mills.  There was generally a good clearance of finer wools although some growers chose to pass in their wools at these levels.

Fleece

Good colour 10% dearer.

Average colour 10% dearer.

Shears

Crossbred second shear 8 to 10% dearer.

Lambs

Crossbred lambs 5% dearer.

Finer lambs up to 15% dearer.

Oddments

Crossbred oddments including lamb oddments 6% dearer.

Passings

7% Passed In.

Next Auction

North Island only offering 10,300 bales on 4th March.

EASTERN AUSTRALIAN MARKET REPORT

 

COMMENT

Better specification sought after in a deteriorating selection.

FLEECE

Best style fully firm in limited selection.

Good/Ave style par to 1% easier.

SKIRTINGS

Best skirtings FNF firm

B/C Fault par to 1% easier

 

OPEN TOP

Slightly easier in a limited selection.