AUSTRALIAN WEEKLY MARKET REPORT

Comment

A degree of panic buying emerged this week. There is no shortage of wool in general terms, with broker warehouses still holding more bales than this time last year. However, there is no doubt a shortage of fine wool and these types are more affected by this squeeze than the other types. There is sufficient interest in all wool sub 18.0 micron, but particularly those 16.0 and finer. It’s not just combing merino types but cardings and crossbred wools were also keenly sought after this week. All current buying is for prompt demand and immediate delivery. The better fine types were well supported to the close of sale while the medium and broader merinos fell late in the sale Thursday.

AWEX Eastern Indicator compared with 22/01/2021

Eastern Indicator

Close: 1291

Change in % +7.40%

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

Authentico Index Values

15 Micron

Close: 3388

Change in %:  +11.08

16 Micron

Close: 2655

Change in %: +2.51

17 Micron

Close: 2255

Change in %: +3.49

18 Micron

Close: 1941

Change in %: +5.49

19 Micron

Close: 1687

Change in %: +7.59

Authentico Indicator

Close: 2297

Change in %: +5.08

Forecast

We have a few sales in February where we expect a better selection of fine wool. There is a fine wool sale next week in Sydney (WK32) that will offer some selected clips from the Goulburn / Yass district. This is followed by the Tasmanian feature sale in Melbourne (WK33) and a New Zealand offering (WK34)  that is expected to offer predominantly fine and superfine types.

The cheaper market in Fremantle on Thursday is expected to flow through to Sydney and Melbourne auctions on Tuesday next week but some expect that the market might not be that bad. For sure it will be cheaper but growers are expected to pass wool in and surely the market sentiment can’t be that much different form one week to the next.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 31                     10244                        9761                4.7%

South                     M 31                     21053                       19756               6.2%

West                       F 31                       8544                         8025               6.1%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 32                      T – W                          13432

South                     M 32                      T – W                          24975

West                       F 32                       T- W                            8417

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece 30-80 cents cheaper, skirtings unchanged, and open tops slightly easier.

FLEECE

The fleece market fell today with 19.5u and finer microns around 30-40 cents cheaper, while 20.0u and broader were the most affected falling around 80 cents.

The passed-in rate for fleece was 13.9%.

SKIRTINGS

Skirtings finished the day generally unchanged.

OPEN TOP

Open tops were also generally unchanged compared to yesterday.

 

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Market settles around yesterday’s basis. Best fine wool still keenly sought.

FLEECE

18.5 micron and finer best specification par to 1% dearer

18.5 micron and finer good to average specification unchanged

19.0 / 19.5 micron unchanged

20.0 / 21.0 micron 1% easier

21.5/22.0 micron unchanged

SKIRTINGS

Best lots all 1% dearer

Others unchanged

OPEN TOP

Nominally 1% easier.

 

FREMANTLE MARKET REPORT

COMMENT

Fleece and skirtings 100-150c dearer, and open tops 50-125 cents dearer.

FLEECE

The fleece market followed eastern states with 18.5u and finer fleece up to 150 cents dearer, while broader microns were around 100 cents dearer. Prices continued to edge higher and closed the sale at their highest point.

The passed-in rate for fleece was 0.7%.

SKIRTINGS

Skirtings finished the day around 100-150 cents dearer with finer microns the most affected.

OPEN TOP

17.5u and finer open tops were 150+ cents dearer, while 18.5-20.5u were 50-100 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Strong market sentiment today with Chinese indents leading the charge and the A$ on the improve.

FLEECE

16.5 micron and finer 4% dearer

17.0 to 21.5 micron 4% dearer

SKIRTINGS

17.5 micron and finer 4% dearer

18.0 to 21.5 micron 3% dearer

OPEN TOP

Nominally 3-4% dearer.

 

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