AUSTRALIAN WEEKLY MARKET REPORT - The Schneider Group

Comment

Quite an interesting week, with currency volatility, poor style selection and grower resistance found the market retracting by 1.5%, which is much better than expected. What is affecting the market currently, Yield is a major factor with a large percentage of drought affected wools falling into the high 50’s to low 60’s, trying to average 70% is a mammoth task for all the Chinese topmakers. This has caused a genuine two market scenario between high yielding and low yielding wools on offer. Lack of demand is still playing a part in a lacklustre market as traders are finding it the most difficult trading conditions we have seen for some 20 years. The shining light again this week is certified wools which are still in demand if we can actually find the wool. China and the USA are locked in trade tariff discussions which everyone is hopeful of some positive outcomes, however this does not directly affect the current market. India is moving slowly and may have missed the boat to buy better spec wool as they disappear in the back end of the season. Japan remains optimistic of better things come, whilst Korea continues to increase volumes of processed wool in a low demand period.

AWEX Eastern Indicator compared with 02/05/25

Eastern Indicator

Close: 1191

Change in % unchanged -1.6%

Authentico Index Values

15 Micron

Close: 3039

Change in %: -1.5

16 Micron

Close: 2162

Change in %: -1.8

17 Micron

Close: 1848

Change in %: -1.8

18 Micron

Close: 1778

Change in %: +0.4

19 Micron

Close: 1704

Change in %: -1.5

Authentico Indicator

Close: 1995

Change in %: -1.1

Forecast

With an offering under 30,000 bales through the next two weeks, we may see a small rally as the market comes to terms with the poor style offering. Late news out of South Africa is they have another outbreak of Foot & Mouth which will cease wool sales and shipments indefinitely from today. This might provide the Australian market with a benefit of improved competition as major South African buyers look to top up volumes out of the Australian market. This might be the spark we have looking for in terms of competition for the Chinese indent buyers.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 45	6464	6007	7.1%
South	M 45	17721	15138	14.6%
West	F 45	4323	3322	23.2%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S46	T / W	9845
South	M46	T / W	18899
West	F46	T	4323

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