EASTERN AUSTRALIAN MARKET REPORT

Market showed steady improvement today assisted by a slightly weaker A$.

COMMENT

All descriptions dearer in keen competition, with Chinese interests leading the way.

FLEECE

Generally 1% dearer across a wide range of types.

SKIRTINGS

A full 1% dearer

OPEN TOP

1% dearer.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

All merino types and descriptions were in demand this week. Prior to the opening of the auction, prices were expected to be strong with exporters and traders hinting at healthy sales since the previous close. The market opened strongly and continued. The most inferior types were initially the most affected with volume and price the most important factors. On day two there were some signs that buyers were keener on the better specification, which were clearly better value. In monetary terms, the finer types continue to increase the most but there was a shift in focus this week towards the medium and broader merinos when considered as a percentage gain. Some were likely looking for better value in this range.

AWEX Eastern Indicator compared with 11/06/2021

Eastern Indicator

Close: 1448

Change in % +3.95

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

Authentico Index Values

15 Micron

Close: 3584

Change in %:  +5.04

16 Micron

Close: 3111

Change in %: +5.21

17 Micron

Close: 2688

Change in %: +4.31

18 Micron

Close: 2325

Change in %: +5.68

19 Micron

Close: 1929

Change in %: +5.87

Authentico Indicator

Close: 2677

Change in %: +5.06

Forecast

The most obvious signal from this week’s sale was how little focus there was on staple length or strength. Often, we talk about mid break being a key characteristic that determines demand. This was not an issue this week. All qualities within a particular point of micron, regardless of length, strength or mid break, were all costing the same. This is an indication of the market dominance of China but also the focus on knitting types rather than the weaving types which typically require better performing characteristics.

The Australian dollar has eased significantly against the USD overnight. This could have an interesting influence on the local market if maintained until Tuesday.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 51                  12554                 12062               3.9%

South                     M 51                  19564                18618                4.8%

West                       F 51                   10378                 9847                 5.1%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 52                     T-W                             12525

South                     M 52                     T-W                            22075

West                       F 52                      no sale

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

FREMANTLE MARKET REPORT

COMMENT

Fleece and skirtings 30 to 50 cents dearer, fine open tops 75 cents dearer, broader microns firm to 10-15 cents dearer.

FLEECES.

The fleece market was generally 30-50 cents dearer across all microns today. Again best style, low vm lots were highly sought after.

The passed-in rate for fleece was 1.5%.

SKIRTINGS

Skirtings finished the day 30-50 cents dearer with the finer end most affected.

OPEN TOP

18.5u and finer open tops were around 75 cents dearer while broader microns were firm to 15 cents dearer.

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer. Chinese indent orders dominating the market.

COMMENT

All descriptions dearer from the outset.

FLEECE

Generally 2 to 3% dearer across the whole range meaning in actual value that the finest types were most impacted again.

SKIRTINGS

A full 1% dearer

OPEN TOP

1% dearer.

NEW ZEALAND MARKET REPORT

Summary

Market strong.

Comment

South Island only offering 5,100 bales.  The selection consisted of 50% crossbred fleece, some new season good style, bulk average colour, 15% crossbred second shear, good colour 75/100mm, 17% end of season lambs good colour, 15% associated oddments and 3% miscellaneous types.  Keen widespread competition with most sectors operating.

Fleece

Good style 10% dearer.

Average style fleece 5% dearer.

Second Shears

Good style 4% dearer.

Lambs

All descriptions 5.5% dearer.

Oddments

Buyers favour.

Passings

5% Passed In.

Next Auction

North Island only offering 9,800 bales 24th June.

FREMANTLE MARKET REPORT

COMMENT

Fleece firm to 70-100 cents dearer, skirtings 30-50 cents dearer, and fine open tops 40-100 cents dearer.

FLEECES.

The fleece market followed the rise in the east with 18.0u and finer fleece up to 100 cents dearer. Medium microns were around 80 cents dearer and broader microns 60 cents dearer.

The passed-in rate for fleece was 5.9%.

SKIRTINGS

Skirtings finished the day 30-50 cents dearer, with the fine end most affected.

OPEN TOP

17.5u and finer open tops were 100 cents dearer while broader microns were 30-50 cents dearer.

 

EASTERN AUSTRALIAN MARKET REPORT

Market dearer across the board. Focus on fine wool.

COMMENT

There is very little premium for quality at the moment with the best value being clearly the better types.

FLEECE

19.0 micron and finer 2 to 3% dearer with tender and inferior types most affected

19.5 / 21.5 micron 1% dearer. Low VM and tender types most affected

SKIRTINGS

18.5 micron and finer 1% dearer

19.5 / 20.5 micron firm

OPEN TOP

18.0 micron and finer 2% dearer

18.5 / 19.5 micron fully firm

SCHNEIDER NZ MARKET REPORT

Summary

Market continues upwards.

Comment

North Island only selling today with 8,100 bales on offer.  The selection consisted of 50% crossbred second shear and early shorn bulk 3″ good colour, 20% crossbred fleece average/inferior colour, 15% end of season lambs, average colour and 15% oddments bulk clothing style.

Again keen widespread competition with most sectors operating.  United Kingdom, China and Indian Sub Continent main, with support from Australasian carpet mills.

Fleece Wools

All descriptions sellers favour.

Second Shears

All descriptions 5% cheaper.

Lambs

Lambs 5.5% dearer.

Oddments

Oddments 10% dearer.

Passings

2% Passed In.

Next Auction

South Island only offering 5,200 bales 17 June 2021.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was another stellar performance for the Australian auction this week. There was no Fremantle sale which reduced the national volume to around 36,000 bales. All types and descriptions were dearer with buyers competing to meet the current prompt demand for greasy wool. There was a push by some Chinese indent operators on Wednesday as they were unable to buy from local traders. What is very pleasing for us is the current market for fine and superfine wool. We at the Schneider Group have held a long-term interest and friendship with many superfine wool producers, and in particular the Australian Superfine Wool Growers Association. We understand the difficulties they have faced over many years with an obvious overproduction of superfine wool in recent times. We couldn’t be more pleased to see the current trend which is rewarding these producers for their quality and effort.

AWEX Eastern Indicator compared with 4/06/2021

Eastern Indicator

Close: 1393

Change in % +3.72

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

Authentico Index Values

15 Micron

Close: 3412

Change in %:  +1.76

16 Micron

Close: 2957

Change in %: +1.93

17 Micron

Close: 2577

Change in %: +3.54

18 Micron

Close: 2200

Change in %: +3.14

19 Micron

Close: 1822

Change in %: +1.67

Authentico Indicator

Close: 2548

Change in %: +2.70

Forecast

Sales will be held on Wednesday and Thursday next week with Monday being a public holiday in the eastern states. According to AWEX figures, the ‘grower first- hand’ bales offered up to week 50 in the 2020 season is 22% more than the first-hand bales offered to the same period in the 2019 season. No doubt the recent market performance has helped to clear a large percentage of the grower held stock. While there still appears to be a good supply of samples on the show floor that are representing bales awaiting sale, we understand from the brokers that a lot of this is crossbred types which are still struggling to sell under subdued global demand, particularly for the inferior types. These bales are unlikely to be offered until we see the market improve in that sector.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 50                  12705                 12249               3.6%

South                     M 50                 23583                 22562               4.3%

West                       F 50                   no sale

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 51                     W-T                             13182

South                     M 51                     W-T                            21635

West                       F 51                      W-T                            10524

 

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

EASTERN AUSTRALIAN MARKET REPORT

Market continues upward.

COMMENT

Indent buyers on behalf of Chinese mills were very active. Less than 5% passed in.

FLEECE

20.5 micron and finer 1% dearer across the board.

21.0/22.0 micron fully firm.

SKIRTINGS

17.0 / 18.0 micron 1 to 2% dearer.

18.5 / 19.5 micron 2% dearer.

OPEN TOP

18.5 micron and finer fully firm.

19.0 / 21.0 micron 2% dearer.