AUSTRALIAN WEEKLY MARKET REPORT

Comment

General market sentiment was tending positive leading into this week’s sale. The result was better than expected but a reflection of continued demand for good specification fine wool in particular. At the same time, the AUD was lower against the USD following nervousness in the share markets. The EMI in USD value is still ranging in the 970/1000 level and this is ensuring solid support from the Chinese market. The lack of good quality fine wool available with NM or CM specification is ensuring that those types remain keenly sought after with Italian and Indian interests most interested.

AWEX Eastern Indicator compared with 21/01/2021

Eastern Indicator

Close: 1407

Change in % +1.08

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

Authentico Index Values

15 Micron

Close: 3822

Change in %: -1.92

16 Micron

Close: 3184

Change in %: +0.95

17 Micron

Close: 2767

Change in %: +2.41

18 Micron

Close: 2347

Change in %: +0.21

19 Micron

Close: 1904

Change in %:  unchanged

Authentico Indicator

Close: 2724

Change in %: +2.83

Forecast

Sales are to be held on Wednesday and Thursday next week with auctions delayed for 1 day in recognition of the Chinese New Year. Fluctuations on the currency market, if continuing up and down, could well play a role in the market performance next week. The solid rise on Thursday might be a deterrent for new business in the short term back a general lack of volume available should ensure there is enough competition to maintain prices around this level.

We are expecting a better supply of RWS certified wool on the market in the next few weeks. Quality is expected to be variable. Prices for certified wool in recent weeks, particularly RWS certified, have greatly exceeded market expectations yet we continue to see global demand for certified wool grow rapidly. Not just for better weaving types but for knitting and all carding types as well. We continue to play our role in the growth of RWS supply through offering RWS certification for audited growers via our Authentico farm group. Interested growers should speak to their broker to discuss their eligibility.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 30                 10569                  9572                  9.4%

South                     M 30                20916                  19279                 7.8%

West                       F 30                 11309                  10207                 9.7%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 31                     W / T                     8892

South                     M 31                    W / T                     23195

West                       F 31                     W / T                      9703

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

FREMANTLE MARKET REPORT

COMMENT

Fleece 30-40 cents dearer, skirtings 30 cents dearer and open tops unchanged.

FLEECES.

The fleece market opened in line with the east with prices generally 30-40 cents dearer. All microns and types were equally affected. Towards the end of the sale some poorer spec wools showed signs of softening. 

The passed-in rate for fleece was at 2.6%.

SKIRTINGS

Prices were generally 30 cents dearer.

OPEN TOPS

Open tops were generally unchanged.

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Improved market tone. All descriptions dearer assisted by a lower AUD against the USD.

FLEECE

Best specification 18.5 micron and finer 2% dearer, particularly NM and CM certified wool.

All other good to average types 18.5 micron and finer 1% dearer.

19.0 / 21.5 micron 1% dearer.

SKIRTINGS

Better light fault skirtings 1% dearer.

OPEN TOP

All descriptions 1% dearer.

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Fine wool keenly sought after. The market improved over the day to close around similar levels.

FLEECE

Best specification 17.0 / 18.0 micron 1% dearer, Italian interests keen.

All 16.5 micron 1 to 2% dearer in a limited selection

Average 18.0 micron and finer 1% dearer

18.5 / 21.5 micron closed generally firm on Melbourne.

SKIRTINGS

Best lots 1% dearer, others firm

OPEN TOP

All descriptions generally unchanged.

 

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The strong auction market last week was well maintained for the best fine types, especially those wools certified with a NM or CM mulesing status. Good results were achieved on Tuesday but the market settled on Wednesday before remaining generally firm on Thursday. The highlight was the better specification fine wool types. They were keenly sought after and tracked dearer in the 18.5 micron and finer range. This trend was similar for both best fleece and best light fault skirtings. Wool being sourced from farms who no longer mules (NM and CM) continue to be favored, especially from European interests. These wools continued dearer to the close of sale. Following the better-than-expected result last week, the large volume of average specification Chinese quality types were a little irregular through the middle of the week before firming in a smaller national offering (Melbourne only) on Thursday. Some sections of the trade were keener than others and good performing types were the focus. The Australia dollar is fluctuating a little from day to day against the USD and having a small influence on the market. The good season has certainly impacted on the micron profile of the clip. Most clips are broader than recent years and this is encouraging the strong results in the fine and superfine sector.

AWEX Eastern Indicator compared with 14/01/2021

Eastern Indicator

Close: 1392

Change in % +0.22

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

Authentico Index Values

15 Micron

Close: 3897

Change in %: +2.63

16 Micron

Close: 3154

Change in %: +2.90

17 Micron

Close: 2702

Change in %: +2.27

18 Micron

Close: 2342

Change in %: +3.9

19 Micron

Close: 1904

Change in %: +1.33

Authentico Indicator

Close: 2724

Change in %: +2.83

Forecast

Sales will be held on Tuesday and Thursday next week with our national holiday, Australia Day, falling on Wednesday. The Chinese New Year celebrations will start a week later on 1st February. We see little change to the market in the short term with only minor adjustments based on selection and currency from day to day.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North              S 29           10496        9601          8.5%

South               M 29           26119       23248        11.0%

West                F 29            9641        8536         11.5%

Auction offering – next week

Market          Sale          Sale days     Volume

North               S 30            T / T 10656

South               M 30          T / T 22283

West                F 30            T / T 13551

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

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

AUTHENTICO NM/CM attract healthy incentives as exporters seek high quality fine wool.

FLEECE
Best specification 15.5 / 18.5 micron par to 1% dearer in keen competition.
All average specification 18.5 micron and finer 1% easier
All 19.0 / 21.0 micron generally unchanged.

SKIRTINGS

Best style fully firm in good competition.

All other irregular.

OPEN TOP

All descriptions fully firm.

 

FREMANTLE MARKET REPORT

COMMENT

Fleece 20-30 cents cheaper, skirtings and open tops firm.

FLEECES.

The fleece market was cheaper today on the back of poor spec wools which fell around 30 cents. Low vm, low cvh wools help up much better and were only 10 cents cheaper. 

The passed-in rate for fleece was at 15.5%.

SKIRTINGS

18.5u and finer skirtings were firm, while broader microns were 10-15 cents cheaper.

OPEN TOPS

Open tops were generally unchanged.

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Best fine wool still keenly sought after, others a little cheaper.

FLEECE
Best specification 15.5 / 18.5 micron tending a little dearer
All average specification 18.5 micron and finer 1% easier
All 19.0 / 21.0 micron 0.5% easier.

SKIRTINGS

Up to 1% easier.

OPEN TOP

1% easier

 

FREMANTLE MARKET REPORT

COMMENT

Fleece 15-20 cents dearer, skirtings and open tops 20 cents dearer.

FLEECES.

The fleece market opened in line with the east with prices generally 20-30 cents dearer. 18.5u and finer better spec wools were the most affected. Techwool was the dominant buyer and as other exporters pulled back in the last 30 minutes prices came off 10-15 cents and closed not much higher than last week. 

The passed-in rate for fleece was at 14.7%.

SKIRTINGS

18.5u and finer skirtings were 20 cents dearer, while broader microns were unchanged.

OPEN TOPS

Open tops were generally 20 cents dearer.

 

EASTERN AUSTRALIAN MARKET REPORT

COMMENT

Increased volume of RWS wool on offer stimulates keen demand with healthy incentives.

FLEECE

RWS wool keenly sought in good competition.

Best style/strength 18.5 and finer par to 1% dearer.

19.0 and broader fully firm.
All others 1% dearer.

SKIRTINGS

Best skirtings tending 1-2% dearer, others firm.

OPEN TOP

All descriptions fully firm.