AUSTRALIAN WEEKLY MARKET REPORT

Comment

Less than enthusiastic trading this week saw the market in a downward cycle. We have seen evidence this week that when the EMI reaches approx.1370 and the USD price reaches 1000 cents per kg nervousness takes hold and the market retracts. Positives to take from the falling market are that RWS/NM/CM accredited wool did fall by as much and are being well supported. Increased volumes Nationally of RWS wool this week with approx. 2,000 bales on offer. We continue to work closely with wool brokers and wool producers to increase the volume of RWS accredited wool for our brand partners.

AWEX Eastern Indicator compared with 15/10/2021

Eastern Indicator

Close: 1333

Change in % -2.60

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

Authentico Index Values

15 Micron

Close: 3901

Change in %:  +4.70

16 Micron

Close: 3105

Change in %: -0.20

17 Micron

Close: 2702

Change in %: -0.40

18 Micron

Close: 2346

Change in %: -0.70

19 Micron

Close: 1832

Change in %: -1.20

Authentico Indicator

Close: 2709

Change in %: +0.30

Forecast

A slow down in trading conditions and increased volumes on offer could see the market struggling to maintain these current levels. Expectation is for a slightly cheaper market, however with some grower resistance this may change.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 17                    12476                 10459                 16.20%

South                     M 17                    20215                16080                 20.50%

West                       F 17                     8169                  5763                    29.50%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 18                      W / T                   8771

South                      M 18                     W / T                   24829

West                        F 18                      W / T                   6676

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

NEW ZEALAND MARKET REPORT

Summary

Market fully firm.

Comment

North Island only offering 5,100 bales.  The selection consisted of 55% good colour hogget/ewe second shear 31.0 to 37.0 micron bulk 75mm plus, 15% good style hogget fleece 32.0 to 35.0 micron bulk 100/125mm, 10% ewe fleece good/average style bulk 75/150mm, 16% associated oddments and 4% miscellaneous types.  Europe and United Kingdom main with support from the Indian sub continent and Australasian carpet mills.

Fleece

All descriptions crossbred fleece fully firm.

Second Shears

All descriptions sellers favour.

Oddments

Clothing oddments 5% dearer.

Passings

8% passed in.

Next Auction

South Island only offering 6,300 bales Thursday 4th November.

FREMANTLE MARKET REPORT

COMMENT

Fleece 10 cents cheaper, skirtings 10-15 cents cheaper, open tops 10-30 cents cheaper.

FLEECES.

The fleece market was generally unchanged today on the back of strong demand for low cvh fleece types. The high supply of high cvh wools saw the discount for these widen further today. 

The passed-in rate for fleece was 25.1%.

SKIRTINGS

Skirtings were 10 cents cheaper.

OPEN TOP

Open tops were 10-30 cents cheaper.

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

The market managed to limp through to the close today with all sectors active.

FLEECE

Best style/strength,18.5 micron finer par to 1% easier.

20.0/21.5 micron generally unchanged.

Inferior types generally 1-2% easier including B/C fault.

SKIRTINGS

Best style skirtings generally 1% easier.

B/C fault 2% easier.

OPEN TOP

All descriptions generally 1% easier in good selection.

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

A lighter than expected trading week and higher currency dampens enthusiasm in todays market.

FLEECE

Best style/strength, light fault 18.5 micron finer 1-2% easier.

20.0/21.5 micron 1% easier.

Inferior types generally 2-3% easier including B/C fault.

SKIRTINGS

Best style skirtings generally 1-2% easier.

B/C fault 2-3% easier.

OPEN TOP

All descriptions generally 2% easier in good selection.

 

NEW ZEALAND MARKET REPORT

Summary

Mixed market.

Comment

South Island only offering 9,700 bales.  The selection consisted of 44% good/average style hogget/ewe fleece 34.0 to 37.0 micron, 13% good style hogget/ewe second shear 31.0 to 36.0 micron bulk 75/100mm and longer, 20% super style halfbred fleeces 22.0 to 30.0 micron, 12% super style merino fleeces 15.0 to 21.0 micron and 11% associated oddments.  Europe and United Kingdom main with support from Indian sub continent and Australasian carpet mills.

Fleece

Better style crossbred fleece 5% dearer.

Poorer style crossbred fleece 3% cheaper.

Halfbred fleece 3% cheaper.

Merino fleece 17.5 micron and finer keenly sort after, but coarser microns generally cheaper.

Second Shears

Good colour firm.

Poorer style 3% cheaper.

Oddments

Crossbred all descriptions buyers favour.

Passings

17% passed in.

Next Auction

North Island only offering 5,700 bales Thursday 28th October.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Greasy trading activity late last week and through the weekend with Chinese clients was an indication for a very positive opening to the market. Prices advanced a little more than they probably should have as traders and indent buyers pushed to secure some volume against their commitments. As a result, trading activity and general interest softened and Wednesday’s market, while closing around about similar levels, was not as extreme.

The NM market, as shown by our Authentico indicators, was less impacted by this week’s activity. NM types were already selling for a market premium and the focus on Tuesday was simply on securing wool. The NM types are generally more consistently sought after and as a result, they are less volatile.

AWEX Eastern Indicator compared with 15/10/2021

Eastern Indicator

Close: 1369

Change in % +3.48

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

Authentico Index Values

15 Micron

Close: 3717

Change in %:  -1.04

16 Micron

Close: 3111

Change in %: +0.74

17 Micron

Close: 2712

Change in %: -1.13

18 Micron

Close: 2363

Change in %: +2.78

19 Micron

Close: 1854

Change in %: +0.11

Authentico Indicator

Close: 2702

Change in %: +0.41

Forecast

As we identified last week, there seems a level in the market that finds regular support. Prices were around that basis last week and reacted accordingly with strong interest from China and Europe. This is seeing the market trade consistently within a fairly narrow range. The market might yet ease a little next week but will find some support if it settles within the recent range.

There are reports of more wool being held in store awaiting sale but with all commodity prices high and a ‘bumper’ season in Australia, growers are more likely to hold wool and continue to sell other commodities like meat and grain.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 16                    9682                  9101                 6.0%

South                     M 16                   18197                17397                 4.4%

West                       F 16                     5225                  4754                 9.0%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 17                      T / W                   12639

South                      M 17                     T / W                   24132

West                        F 17                      T / W                   8984

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

FREMANTLE MARKET REPORT

COMMENT

Fleece firm to slightly cheaper, skirtings firm, open tops firm.

FLEECES.

Better style, low cvh fleece remained firm to slightly dearer today, while poorer spec wools drifted around 20 cents. Tianyu was very strong today, providing a floor for the market and preventing prices falling any further. 

The passed-in rate for fleece was at 10.9%.

SKIRTINGS

Skirtings were generally firm to slightly dearer.

OPEN TOP

19.5u and finer open tops were generally firm, while 20.5u drifted 20-30 cents on very limited volume.

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Following yesterday’s greater than expected rally, the market opened a little cheaper. It then firmed up as the sale progressed.

FLEECE

All good light fault descriptions unchanged

Inferior types also harder to buy towards the close. Opened 0.5/1.0% cheaper but improved.

SKIRTINGS

Best style skirtings generally firm to slightly easier.

OPEN TOP

Fully firm

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Market dearer after active week of trade. All sectors active.

FLEECE

Best style/strength 19.5 micron finer 3-4% dearer.

Best style 20/215 micron 2-3% dearer.

SKIRTINGS

Best style skirtings generally 2-3% dearer in keen competition.

B/C fault 1-2% dearer.

OPEN TOP

All descriptions 1-2% dearer in keen competition.