Australian Weekly Market Report

Published October 12, 2018 by Tim Marwedel

Comment

Auction prices have improved this week across most types and descriptions, again outperforming expectations. Fine wool prices steadied and there was widespread activity and more buyers at this basis. This should be an encouraging sign for fine and superfine wool in the short term. Supply is currently at the peak. The focus of the trade this week was, however, very much on 18.5 to 22.0-micron merino types with 1 to 2% gains across this range, the broader end most affected.

AWEX Eastern Indicator compared with 05/10/2018

Eastern Indicator

Close: 2023

Change in %: +1.55%

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

Schneider Indicators compared with 05/10/2018

15 Micron (*)

Close: 3354

Change in %: +1.16

16 Micron

Close: 2967

Change in %: +0.34

17 Micron

Close:  2656

Change in %: -0.26

18 Micron

Close: 2463

Change in %: +1.58

19 Micron

Close: 2295

Change in %: +0.96

Each indicator is expressed by a number representing a market quotation for a selected range of types and is not a price expression and it’s not influenced by currency fluctuations.

Wool indicators are anyway based on Australian Dollar.

If you want to learn more about SCHNEIDER indicators Click here.

Forecast

The focus on non mulesed wool is now clearer than ever. Regardless of any market premiums, it’s the different market and different orders that are keeping prices for NM wool much more stable than the general market. While recent fluctuations in prices have been well documented, the prices for NM 17.5 / 20.5 have hardly moved. This gives significant advantage to those producers. More regular demand leads to more regular prices and this would be one of the biggest advantages to growers who are able to move their production down this path. Production of NM wool in Australia is also increasing as a percentage of the national clip. AWEX data indicates that to the end of September this year we have seen a reduction in the total offering compared to the same period in 2017 by about 13% (supported by AWTA key test data). However, AWEX National Wool Declaration statistics show a reduction in NM declared lots over the same period at only 1%. Indicating a nice increase in, as a percentage of the whole clip, the proportion of NM declared lots for sale.

Auction offering – current week

Selling Centres for week 15

Market          Sale          Offered          Sold          Passed In

North                   S 15                 8723                     8111                  7.0%

South                   M 15               15869                   14958                5.7%

West                     F 15                7480                     6640                 11.2%

Auction offering – next week

Market          Sale          Sale days          Volume

North                   S 16                W-T                             8741

South                  M 16                W-T                            20771

West                    F 16                W-T                             8152

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