AUSTRALIAN WEEKLY MARKET REPORT
Auction sales resumed this week after the three-week recess. Global demand was varied in recent weeks. There was no doubt some very encouraging demand from Europe in July but interest from China was more subdued in recent weeks. After the initial correction on Tuesday, vegetable matter quickly became the main focus. The exceptional season in the eastern states has resulted in fleece lines consistently testing in excess of 1% VM. Most standard Chinese types require 1% average so anything greater than 1.5% was irregular but those under 1%, regardless of quality, were more keenly sought after. Italian weaver interests were competing on the better quality and specification fine fleece types.
AWEX Eastern Indicator compared with 16/07/2021
Change in % -3.92
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
Change in %: -4.38
Change in %: -2.97
Change in %: -0.60
Change in %: -2.45
Change in %: -3.45
Change in %: -2.38
While the market was cheaper over the week, it was obvious when trying to buy a type to specification, particularly relating to VM, then the competition was much more competitive. Growers have again shown their reluctance to sell in a cheaper market with a high passed in rate reported by AWEX. This is an example of a more positive and mature market outlook for wool. Unlike the ‘old days’ when growers were relying only on wool income, they now have other income streams and have shown that they are prepared to hold wool for better market conditions. As a result, 40% of this week’s original quantity was either passed in or withdrawn prior to sale and next week’s national volume has already been reduced by 11% since the most recent forecast of 9th August.
Auction offering – current week
Market Sale Offered Sold Passed In
North S 06 17047 11191 34.4%
South M 06 23685 16558 30.1%
West F 06 8449 5090 39.8%
Auction offering – next week
Market Sale Sale days Volume
North S 07 T / W 13028
South M 07 T / W 24137
West F 07 T 4119
If you want to see the complete Wool Sales Roster click here.