AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was a very positive week for the Australian wool market. 44,000 bales were offered. This is 10% less than the indication last Friday and all types and descriptions were keenly sought after. The particular focus was on the finer microns. The Authentico Index values for 15.0 and 16.0 micron are now at the highest levels since we started recording them in July 2019. The 15.0 micron Authentico index is about 10% higher than February 2020 and 16.0 micron around 5% higher. There is good general demand for fine micron types but we have also seen a significant drop in supply. The AWTA key test for the 6 months to end December indicates that production for all 16.5 micron and finer is down 32% compared to the corresponding period the year before (2019). 13.5/15.5 micron is closer to 50% down. 16.5/17.5 micron is also 25% lower in comparison. The trend of the national clip has been getting finer year on year for at least 30 years now. This is a significant change.

AWEX Eastern Indicator compared with 15/01/2021

Eastern Indicator

Close: 1202

Change in % +2.56%

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

Authentico Index Values

15 Micron

Close: 3050

Change in %:  +5.24

16 Micron

Close: 2590

Change in %: +8.64

17 Micron

Close: 2179

Change in %: +7.6

18 Micron

Close: 1840

Change in %: +5.5

19 Micron

Close: 1568

Change in %: +1.55

Authentico Indicator

Close: 2186

Change in %: +6.53

Forecast

With the main focus on finer and superfine types, it’s also important to note that we have almost come to the end of the selection of these types for the season. We do have a couple of sales that will offer some fine wool in February but with the improved season we expect the selection to get broader and with more VM (skirtings) as we move towards July.

Sales will be held on Wednesday and Thursday next week as we celebrate Australia Day on Tuesday

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 30                     11734                       10814                7.8%

South                     M 30                     23861                     22394                6.1%

West                       F 30                       8659                       7675                 11.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 31                      W – T                          10939

South                     M 31                      W – T                          23699

West                       F 31                       W -T                            8480

 

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

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Market dearer despite the strength of the A$ and the larger volume offered this week.

FLEECE

16.5 micron and finer 3% dearer

17.0 to 18.5 micron up to 2% dearer

19.0 / 22.0 micron 1-2% dearer

SKIRTINGS

17.5 micron and finer 2-3% dearer

18.0 to 19.0 micron 2% dearer

OPEN TOP

Nominally 2% dearer.

 

NEW ZEALAND MARKET REPORT

Summary

Market again generally firm.

Comment

North Island only offering 6,500 bales.  The selection consisted of 35% bulk average colour crossbred fleece, 23% lambs good colour new season clip, 25% crossbred shears, good/average colour bulk 75mm and 17% oddments.  Widespread competition of a positive tone with most sectors operating.

Fleece

34.0 micron and finer 3/5″sellers favour.

Good colour fleece very firm.

Poorer style fleece firm.

Shears

Good colour shears very firm.

Lambs

New season lambs fully firm.

Oddments

All descriptions buyers favour.

Passings

5% Passed In.

Next Auction

North Island offering 5,100 bales and South Island offering 8,000 bales on 28th January.

FREMANTLE MARKET REPORT

COMMENT

Fine fleece firm to 15-20 cents dearer, broader fleece firm to 10 cents dearer, skirtings 20-30 cents dearer and open tops 10-20 cents dearer.

FLEECE

18.5u and finer fleece opened 10-20 cents dearer today, and as the sale progressed 19.0u and broader edged higher to close 5-10 cents dearer.

The passed-in rate for fleece was 3.0%.

SKIRTINGS

Skirtings finished the day around 20-30 cents dearer.

OPEN TOP

19.5u and finer open tops were 20-30 cents dearer, while 20.5u and broader were 10-15 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Market dearer as buyers scramble to accumulate wool with a particular focus on finer microns.

FLEECE

18.0 micron and finer 2% dearer

18.5 to 19.5 micron up to 1% dearer

20.0 / 22.0 micron buyers favour

SKIRTINGS

17.5 micron and finer 2% dearer

18.0 to 19.0 micron 1% dearer

OPEN TOP

Nominally 1% dearer. The selection is generally on the short side

 

FREMANTLE MARKET REPORT

COMMENT

Fine fleece firm to 10-15 cents dearer, broader fleece 5-20 cents cheaper, skirtings 10 cents dearer and fine open tops 20-30 cents dearer.

FLEECE

Strong demand for 17.5u and finer fleece saw prices around 10-15 cents dearer, while 18.5u-19.5u were 5 cents cheaper and 20.0u and broader 15-20 cents cheaper.

The passed-in rate for fleece was 19.8%.

SKIRTINGS

Skirtings finished the day around 10 cents dearer.

OPEN TOP

18.5u and finer open tops were 20-30 cents dearer, while 19.5u and broader were 10-15 cents cheaper.

 

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Market generally firm with some variability

FLEECE

16.5 micron and finer 2 to 3% dearer in very limited supply

17.0 / 20.0 micron unchanged

20.5 / 22.0 micron up to 1% easier

SKIRTINGS

Better light fault skirtings very firm. Faulty and inferior types up to 1% easier

OPEN TOP

17.5 micron and finer 1% dearer, 18.5/19.5 micron 1% easier.

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Sales have opened in 2021 on a very positive note. Despite the large national offering and a stronger Australian Dollar against the USD, all types and descriptions were in demand. There was strong interest on the finer microns but it should also be noted that they are in smaller supply than what we would expect. The month of January is often a positive month for the auctions and regardless of the overall global situation, it was very encouraging to see that wool is in demand. The market was well maintained to the close in Fremantle.

AWEX Eastern Indicator compared with 18/12/2020

Eastern Indicator

Close: 1172

Change in % +1.30%

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

Authentico Index Values

15 Micron

Close: 2898

Change in %:  +2.11

16 Micron

Close: 2384

Change in %: +3.74

17 Micron

Close: 2025

Change in %: +0.5

18 Micron

Close: 1744

Change in %: +1.1

19 Micron

Close: 1544

Change in %: +1.58

Authentico Indicator

Close: 2052

Change in %: +1.74

Forecast

We have another large volume national sale next week before volumes are expected to settle a little. There is still some wool held in brokers stores nationally. No doubt that if this current market trend continues, we will see some of this wool come onto the market slowly. It’s not all for sale at these levels and we expect some growers to continue to hold wool as they have done historically. While we might see further easing in the broader merinos and crossbred types, like this week, the fine and superfine merino types are likely to again be well supported in limited supply.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 29                     13168                       11761                 10.7%

South                     M 29                     28573                     25286                11.5%

West                       F 29                      10549                       9531                  9.7%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 30                     T – W                           12,927

South                     M 30                   T – W – T                      27,027

West                       F 30                      T – W                            9,286

 

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

FREMANTLE MARKET REPORT

COMMENT

Fine fleece 30-50 cents dearer, broader fleece 5-10 cents dearer, skirtings 20-30 cents dearer and open tops 20-30 cents dearer.

FLEECE

Fleece prices followed a similar pattern to yesterday with good demand for 18.0u and finer pushing prices up 30-40 cents, while 19.5u and broader were firm to 10 cents dearer.

The passed-in rate for fleece was 13.7%.

SKIRTINGS

Skirtings finished the day around 20-40 cents dearer.

OPEN TOP

18.5u and finer open tops were 25-30 cents dearer, while 19.5u and broader were firm.

 

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

The market continued in a positive fashion today with the emphasis on the finer microns with best style and strength.

FLEECE

19.0 micron and finer, all descriptions 1-2% dearer.

20 micron and broader were irregular.

SKIRTINGS

16.5/18.5 micron 1/2% dearer, best style most affected.

OPEN TOP

17.5 / 20.5 micron 1/2% dearer