AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market attention shifted towards the medium and broader merino types this week. While not for the first time, there was word around of pending Chinese uniform orders. There was obvious interest coming from outside of China, even if in small volume, it was enough competition to stimulate the market. There is also the usual swing between micron groups as the price and selection of fine wool has pushed the price a little out of reach for some. The decision for the buyer focus in the 19.0 micron and broader range this week could be based primarily on market price. The small supply of fine wool at the moment resulted in sustained pressure on fine wool prices regardless.

A strong Australian dollar, generally influenced by commodity prices and global confidence, was expected to dampen the wool market this week but it had little effect with prices in USD values increasing more than in AUD values. The AWEX EMI (AUD) is now at the highest level since end March 2020 but still a way off the peak in January, just prior to the shock that was to arrive on the global stage shortly after.

AWEX Eastern Indicator compared with 23/04/2021

Eastern Indicator

Close: 1342

Change in % +2.29

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

Authentico Index Values

15 Micron

Close: 3187

Change in %:  +5.36

16 Micron

Close: 2723

Change in %: +3.61

17 Micron

Close: 2402

Change in %: +2.83

18 Micron

Close: 2051

Change in %: +1.23

19 Micron

Close: 1778

Change in %: +3.79

Authentico Indicator

Close: 2377

Change in %: +2.99

Forecast

The market outlook for wool continues to look positive as we again sold more wool at auction than we would traditionally around this time of the season and the market is still reacting strongly. How much of the current exported volume is destined for stock is unknown. It is possible that processors and manufacturers are building inventory on the expectation of better global conditions in the northern hemisphere next winter. Due to production timing, the raw materials need to be on the move now in order to be ready at retail later in the year. If you don’t have the stock and conditions do improve, as many do hope and suggest, then the risk is to lose another season. Any improvement in consumer sentiment must also be good for the wool market long term and this will be influencing the decisions of those who are more optimistic.

The Wool Production forecast committee has been meeting and we expect an announcement shortly regarding the latest forecast for the current season. Expectations are for a modest gain of around 2% on last year with improved season conditions the main catalyst.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 44                  12017                   11256                6.3%

South                     M 44                 25073                  23448                6.5%

West                       F 44                  10356                    9692                 6.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 45                     T-W                             14082

South                     M 45                     T-W                             24910

West                       F 45                      T-W                              9253

 

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

FREMANTLE MARKET REPORT

COMMENT

Fleece firm to 10 cents dearer, skirtings 20 cents dearer, and open tops firm to 20 cents dearer.

FLEECES.

Fleece prices were mixed today with poor spec wools 10-15 cents cheaper, while best style fleeces were 15-20 cents dearer. Overall the market was firm to slightly dearer, with 20.0u and broader the most affected rising by 20-25 cents.

The passed-in rate for fleece was 9.9%.

SKIRTINGS

Skirtings finished the day around 20 cents dearer.

OPEN TOP

Finer open tops were firm, with 20.0-21.5 30-40 cents dearer.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market finishes the week in positive territory spurred on by consumer confidence.

COMMENT

Market separation between FNF and B/C Fault as we head deeper into autumn shearing. Light VM types keenly sought in limited demand.

FLEECE

16.0 micron in limited supply remains extreme, plus 2%.

16.5 / 17.5 micron 1-2% dearer, with RWS 3/4% dearer in limited offering.

18.0 / 19.0 micron 1-2% dearer

19.5 / 21.5 micron 1-2% dearer

SKIRTINGS

17.5 micron and finer 1-2% dearer in limited offering.

18.0 / 19.5 micron 1-2% dearer

OPEN TOP

All descriptions 1-2% dearer.

FREMANTLE MARKET REPORT

COMMENT

Fleece 40-50 cents dearer, skirtings 20-40 cents dearer, and open tops 50-60 cents dearer.

FLEECES.

Fleece prices rose strongly today with all microns generally 40-50 cents dearer. Again low vm, high yielding wools were the most affected.

The passed-in rate for fleece was 4.3%.

SKIRTINGS

Skirtings finished the day around 20-40 cents dearer.

OPEN TOP

Open tops were very strong, rising 50-60 cents today.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer.

COMMENT

Main focus has shifted towards the medium to broader micron merino types with light fault types most affected.

FLEECE

16.0 micron in limited supply remains extreme, plus 2%.

16.5 / 17.5 micron fully firm

18.0 / 19.0 micron 1% dearer

19.5 / 21.5 micron 2% dearer

SKIRTINGS

17.5 micron and finer fully firm

18.0 / 19.5 micron 1% dearer

OPEN TOP

Tending 1% dearer.

EASTERN AUSTRALIAN MARKET REPORT

Market continues to trade in positive territory.

COMMENT

Best fine difficult to find in deteriorating broader/burry selection today.

FLEECE

16.5/17.5 micron keenly sought finishing 1% dearer for the day.

18.5 / 19.5 micron fully firm

20.0 / 21.5 micron par to sellers favor throughout the day.

SKIRTINGS

17.5 micron and finer 2% dearer in keen competition and limited supply

18.0 micron and broader 1% dearer in limited supply

OPEN TOP

18.5 micron and finer 2% dearer.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market improved this week particularly in the 18.5 micron and finer categories where we saw most competition across a wide range of types. Local Chinese processing interest created healthy activity in 165/175/185 micron fleece, pieces and belly types. Merino cardings for scouring, carbonizing and knitting types were all well supported with healthy gains over the week. We are starting to see small optimistic movement from Europe and India for the second half of this year, but for the short term main interest is coming from China as outlined above. The A$ trading in a tight range seems to be helping exporters, however we are still faced with containerization and shipping delays which up to this point have not dampened the enthusiasm to buy.

 

AWEX Eastern Indicator compared with 01/04/2021

Eastern Indicator

Close: 1312

Change in % +1.62

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

Authentico Index Values

15 Micron

Close: 3025

Change in %:  +2.5

16 Micron

Close: 2628

Change in %: +0.61

17 Micron

Close: 2336

Change in %: +1.16

18 Micron

Close: 2026

Change in %: +1.19

19 Micron

Close: 1713

Change in %: +0.17

Authentico Indicator

Close: 2308

Change in %: +1.13

Forecast

The early seasonal cold and wet conditions are taking its toll in certain wool growing areas slowing shearing rates and warehouses already quite full from passed and held grower stockpiles could slightly influence the market with smaller volumes in the coming weeks. Add to this the deterioration of the selection as autumn shorn wools are carrying higher vm levels leaving exporters scrambling to find low vm through this period to satisfy demand. Demand seems healthy particularly out of China at present which should be enough to keep the market ticking along a positive path.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 43                 9692                    9155                 5.5%

South                     M 43                 21013                  18297               12.9%

West                       F 43                   9697                    8642                10.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 44                     T-W                             12,493

South                     M 44                     T-W-T                        27,286

West                       F 44                      T-W                             11,042

 

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

NEW ZEALAND MARKET REPORT

Summary

Market generally firm.

Comment

South Island only offering 9,645 bales.  The selection consisted of 40% crossbred fleece, mainly average style 3/5″, 4/6″,  25% lambs mainly good to average style, 15% early shorn/second shear bulk 3″ good style, 15% oddments average/inferior style and 5% miscellaneous types.  Europe & Sub-Continent main with support from Australasian mills & China.

Fleece

In a limited selection of good colour fleece very firm to sellers favour.

Average/Poor style fleece fully firm.

Second Shears

Again in a limited selection of good colour shears very firm to sellers favour.

Average/Poor style shears fully firm.

Lambs

Washing lambs – buyers favour.

Combing lambs – firm

Oddments

All descriptions firm.

Passings

12% Passed In.

Next Auction

North Island only offering 6,600 bales 29th April.

FREMANTLE MARKET REPORT

COMMENT

Fine fleece firm, medium and broader microns 15-20 cents cheaper, skirtings 20c dearer, and open tops unchanged.

FLEECES.

Fleece prices were mixed today with 18.5u and finer generally firm, while medium to broader microns were 30-40 cents cheaper when the sale opened, but firmed during the sale to close only 10-15 cents cheaper.

The passed-in rate for fleece was 22.1%.

SKIRTINGS

Skirtings finished the day around 20 cents dearer.

OPEN TOP

Open tops were generally unchanged today.

 

 

EASTERN AUSTRALIAN MARKET REPORT

Fine wool in strong demand.

COMMENT

Large supply of generally faulty broad merinos failed to gain full support and closed cheaper.

FLEECE

17.5 micron and finer nominally very firm

18.0 / 18.5 micron 0.5% dearer

19.0 micron firm

19.5 micron 1% easier

20.0 / 21.5 micron up to 3% easier

SKIRTINGS

17.5 micron and finer fully firm

18.0 / 19.0 micron tending in sellers favour

19.5 / 20.0 micron 1% easier

OPEN TOP

18.5 micron and finer 1% dearer, 19.0 micron and broader were 1% easier.