We’ve now been selling around 30,000 bales per week for a few weeks with lower passed in rates. A few months ago, the market could only manage 20,000 per week. This is a much stronger market performance. Some would have expected a softening tone this week but prices were dearer from the outset. The difference this week is that all types and descriptions were dearer. 20.0 micron and broader settled a little towards the close on Wednesday but finer merino’s, crossbreds and cardings all maintained the levels to the close.
The performance of the superfine sector, particularly 17.5 micron and finer, has been a stand out. Noting that we are currently in the peak period for annual supply and beyond November availability is expected to drop. The exception being a couple of opportunities in February 2021.
AWEX Eastern Indicator compared with 02/10/2020
Change in % +2.61
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
Change in %: +2.42
Change in %: +0.92
Change in %: +0.52
Change in %: +2.06
Change in %: +2.31
Change in %: +1.39
Grower held stocks remain at reasonably high levels but clearly growers are prepared to hold wool for better market conditions. Seasonal factors are favourable. Livestock prices, while settling are still high, and crop yields will be very good. Both livestock and crops generally need to be sold when ready. This provides cash flow to woolgrowers and allows them to be hold wool in store. A large percentage of the wool held in store is drought affected with low vegetable matter (VM). This could well be an advantage as the VM of the clip is expected to increase into our summer and through to autumn 2021.
Auction offering – current week
Market Sale Offered Sold Passed In
North S 15 7365 7079 3.9%
South M 15 15508 14583 6.0%
West F 15 5473 5200 5.0%
Auction offering – next week
Market Sale Sale days Volume
North S 16 T / W 7971
South M 16 T / W 16828
West F 16 W 5669
If you want to see the complete Wool Sales Roster click here.