It has been an extraordinary turn around for the wool market in the last two weeks. Driven by Chinese demand, all types and descriptions were significantly dearer. With greasy wool supplies low and some fresh demand for prompt delivery, exporters were able to sell good volume leading into the sale and this was followed up again on Tuesday after the first sale day. The main interest is driven by the Chinese domestic market and focused on 17.5 and 18.5 micron short wool tops for the woollen and semi worsted business. Global demand remains limited.
AWEX Eastern Indicator compared with 09/10/2020
Change in % +9.3%
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Authentico Index Values
Change in %: +8.14
Change in %: +8.26
Change in %: +7.49
Change in %: +9.07
Change in %: +8.49
Change in %: +8.25
The price premium for fine and superfine over the medium micron merino is very healthy. The superfine sector has often felt the most impact during any market downturn but this has been very different. From 19.0 micron up to 15.5 micron we are seeing a premium of at least 20c per kg for every 0.1 of a micron.
The market is often variable and fluctuating through this period. This might be felt more due to the absence of any great competition for the Chinese but some exporters believe that the market strength is expected to remain through until December. It might depend on the Chinese National Singles Day, the national online shopping event on November 11. If this is successful, demand could continue through to December.
Auction offering – current week
Market Sale Offered Sold Passed In
North S 16 8101 7967 1.7%
South M 16 14351 14049 2.1%
West F 16 5228 5007 4.2%
Auction offering – next week
Market Sale Sale days Volume
North S 17 T / W 7660
South M 17 T / W 17832
West F 17 T / W 8601
If you want to see the complete Wool Sales Roster click here.