AUSTRALIAN WEEKLY MARKET REPORT
All types and categories attracted strong competition this week but it was the fine wools that were in keenest demand. Short fine merino types for knitwear are in strong demand and limited supply so the price gap between them and the better weaving types is minimal. In contrast, the price range between fine wool and the medium to broader micron merinos is now at the largest premium seen for many years. While it’s not all bad news for the medium wool producers who benefit from greater wool cut, it’s fantastic news for our super fine wool producer friends that for too long have been behind in terms of returns in comparison. Crossbred wools are still struggling to gain any real demand and in particular those crossbred clips that have not been prepared to the code of practice are being discounted heavily. The Fremantle market closed stronger than the East. This could either be market driven or the fact that there is no sale next week in Fremantle leaving exporters a little short to complete container loads for prompt export.
AWEX Eastern Indicator compared with 27/05/2021
Change in % +1.74
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
Change in %: +1.85
Change in %: +2.33
Change in %: +0.69
Change in %: +2.40
Change in %: +2.28
Change in %: +1.76
We have noted the better demand for fine and superfine knitting types and the increasing price gap between fine and medium micron merino wools. The AWEX MPG (micron price guide) for 17.5 micron now sits at around a 46% premium over the 19.5 MPG. AWTA test figures for the season indicate a 5.5% increase in total tested volume between July 2020 and May 2021 compared to the same period the previous year. However, a look into the micron figures reveals a different trend. Tested volume 16.5 micron and finer is 27% below the same period the previous season and 16.6/17.5 is 13.9% below. The ultrafine production is even more alarming with 12.5 / 14.5 micron approximately 50% down in volume in comparison. These figures would certainly be a factor influencing the current market trend.
Auction offering – current week
Market Sale Offered Sold Passed In
North S 49 10864 10522 3.1%
South M 49 20736 18951 8.6%
West F 49 6990 6251 10.6%
Auction offering – next week
Market Sale Sale days Volume
North S 50 T-W 13267
South M 50 T-W 25407
West F 50 no sale
If you want to see the complete Wool Sales Roster click here.