FREMANTLE MARKET REPORT

COMMENT

Fleece unchanged to 10-15 cents cheaper, skirtings unchanged, open tops 50-70 cents cheaper.

FLEECES.

The fleece market fell slightly in line with Melb/Syd today. Best style, low vm lots saw good demand, while any lots over1.0% and lower yields were the most affected and fell 15-20 cents.

The passed-in rate for fleece was again very high at 42.1%.

SKIRTINGS

Skirtings traded at similar levels to last sale.

OPEN TOP

Open tops fell by around 50-70 cents.

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Best fine wool remains keenly sought after despite the generally softer market tone.

FLEECE

Best 16.5 micron and finer 1% easier

Best 17.0 / 18.5 micron firm

All other descriptions  1% easier.

SKIRTINGS

Better light fault types generally firm, others 1% easier.

OPEN TOP

1% easier

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The highlight this week was some best quality superfine bales sold with RWS certification. They appeared to be purchased ‘at best’. Other best style and performing NM/CM lines 16.0 micron and finer were also keenly sought after. The offering is again a little broader than normal years with a continuation of the exceptional growing season. Perhaps some are concerned with supply of best non mulesed types under 16.0 micron and this is building some optimism in this sector. The short types 17.5 micron and finer including prem fleece and good skirtings were also performing better than most types this week.

AWEX Eastern Indicator compared with 20/08/2021

Eastern Indicator

Close: 1350

Change in % +1.12

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

Authentico Index Values

15 Micron

Close: 3966

Change in %:  +4.58

16 Micron

Close: 3089

Change in %: +2.93

17 Micron

Close: 2638

Change in %: +0.04

18 Micron

Close: 2226

Change in %: -0.54

19 Micron

Close: 1782

Change in %: -0.94

Authentico Indicator

Close: 2652

Change in %: +1.14

Forecast

It was a positive sign to have a firming market trend this week. Prices for 19.0 micron and broader did seem to ease a little late on Wednesday so it will be interesting to see if this has any impact on the general market next week. Major Chinese Topmakers could well again be the key to the market strength and if other Chinese traders are able to sell on the back of this.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 08                  12250                 10491                14.4%

South                     M 08                  15993                 13609                14.9%

West                       F 08                   no sale

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 09                      T / W                         11575

South                      M 09                     T / W                         19493

West                        F 09                      T / W                           9486

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

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Fine wool remains keenly sought after. 18% passed in.

FLEECE

Best 18.0 micron and finer 1% dearer

Good 18.0 micron and finer unchanged to slightly easier

18.5 micron and broader 1% easier, 19.5 micron least affected.

SKIRTINGS

Generally firm for good types.

OPEN TOP

Up to 1% dearer.

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

10% passed in nationally. Better market tone

FLEECE

1% dearer with best 18.0 and finer and all 19.0 and broader most affected

SKIRTINGS

1% dearer

OPEN TOP

1% dearer

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market numbers certainly weren’t great reading on Tuesday but high passed in and withdrawn rates reduced the volume sold to the trade and limited any damage to a minimum. The silver lining was the competition from Italian interests on better fine wool. As we’ve often stated, the mulesing status should be considered like an insurance policy. When the Chinese demand is limited, the deeper supply chain interest for wool from farms who no longer mules is enough to help those clips through these difficult periods. It was the same when the Covid-19 pandemic first hit in 2020. It’s not always about the premium from day to day but also about consistent demand when it’s needed most, like now. The Authentico Indicators and Index Values Authentico Index Values and Authentico Indicator by The Schneider Group (gschneider.com) were less impacted this week with only minimal change.

AWEX Eastern Indicator compared with 13/08/2021

Eastern Indicator

Close: 1335

Change in % -2.7

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

Authentico Index Values

15 Micron

Close: 3792

Change in %:  +1.74

16 Micron

Close: 3001

Change in %: -1.09

17 Micron

Close: 2637

Change in %: -0.68

18 Micron

Close: 2238

Change in %: +0.31

19 Micron

Close: 1799

Change in %: -1.1

Authentico Indicator

Close: 2622

Change in %: -0.19

Forecast

Large volumes were again withdrawn from sale prior to auction or passed in when failing to meet the grower reserve. This is definitely helping the market. The general level of competition on Wednesday in Sydney and Melbourne was more encouraging. There were less holes in the market on Wednesday and the inferior types which often failed to get much interest on Tuesday, were getting more buyer support at this level.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 07                  11386                  7982                29.9%

South                     M 07                  16764                13354                20.3%

West                       F 07                   4088                   1749                57.2%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 08                      T / W                         13537

South                      M 08                     T / W                         18806

West                        F 08                       no sale

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

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Market improves as grower resistance kicks in with withdrawn and passed in at 40% of today’s offering.

FLEECE

Best style RWS wool keenly sought with significant improvement

Best style 17.0 / 18.0 micron 1% dearer

Good/Ave style 1% dearer with light fault

Inferior types irregular.

SKIRTINGS

Best style FNF 1% dearer keenly sought.

B/C Fault still 1% easier.

OPEN TOP

1% dearer in limited offering.

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Market cheaper with best least affected. 32% of the national offering was passed in.

FLEECE

Best 15.5/16.5 micron 2% easier

Best 17.0 / 18.0 micron fully firm

Good light fault descriptions 1 to 2% easier

Inferior types very irregular, high passed in percentage and 2 to 3% easier

SKIRTINGS

3 to 4% easier

OPEN TOP

3 to 4% easier

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Auction sales resumed this week after the three-week recess. Global demand was varied in recent weeks. There was no doubt some very encouraging demand from Europe in July but interest from China was more subdued in recent weeks. After the initial correction on Tuesday, vegetable matter quickly became the main focus. The exceptional season in the eastern states has resulted in fleece lines consistently testing in excess of 1% VM. Most standard Chinese types require 1% average so anything greater than 1.5% was irregular but those under 1%, regardless of quality, were more keenly sought after. Italian weaver interests were competing on the better quality and specification fine fleece types.

AWEX Eastern Indicator compared with 16/07/2021

Eastern Indicator

Close: 1372

Change in % -3.92

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

Authentico Index Values

15 Micron

Close: 3727

Change in %:  -4.38

16 Micron

Close: 3034

Change in %: -2.97

17 Micron

Close: 2655

Change in %: -0.60

18 Micron

Close: 2231

Change in %: -2.45

19 Micron

Close: 1819

Change in %: -3.45

Authentico Indicator

Close: 2627

Change in %: -2.38

Forecast

While the market was cheaper over the week, it was obvious when trying to buy a type to specification, particularly relating to VM, then the competition was much more competitive. Growers have again shown their reluctance to sell in a cheaper market with a high passed in rate reported by AWEX. This is an example of a more positive and mature market outlook for wool. Unlike the ‘old days’ when growers were relying only on wool income, they now have other income streams and have shown that they are prepared to hold wool for better market conditions. As a result, 40% of this week’s original quantity was either passed in or withdrawn prior to sale and next week’s national volume has already been reduced by 11% since the most recent forecast of 9th August.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 06                  17047                 11191                 34.4%

South                     M 06                 23685                16558                30.1%

West                       F 06                   8449                   5090                39.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 07                      T / W                         13028

South                      M 07                     T / W                         24137

West                        F 07                       T                                  4119

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

EASTERN AUSTRALIAN MARKET REPORT

Market slightly firmer as exporters chase light fault in a sea of higher VM wool.

COMMENT

Best style and strength keenly sought, particularly light fault across all categories.

FLEECE

Best Italian weaver specification fleece were keenly sought after, particularly 17.0 / 18.0 micron non mulesed and remain firm tending dearer at the close of sales today.

Good/Ave style a little irregular.

Inferior style 1-2% easier.

SKIRTINGS

Best light fault skirtings finished the day firm.

B/C Fault 1-2% easier.

OPEN TOP

Par to 1% easier in limited supply.