Greasy trading activity late last week and through the weekend with Chinese clients was an indication for a very positive opening to the market. Prices advanced a little more than they probably should have as traders and indent buyers pushed to secure some volume against their commitments. As a result, trading activity and general interest softened and Wednesday’s market, while closing around about similar levels, was not as extreme.
The NM market, as shown by our Authentico indicators, was less impacted by this week’s activity. NM types were already selling for a market premium and the focus on Tuesday was simply on securing wool. The NM types are generally more consistently sought after and as a result, they are less volatile.
AWEX Eastern Indicator compared with 15/10/2021
Change in % +3.48
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
Change in %: -1.04
Change in %: +0.74
Change in %: -1.13
Change in %: +2.78
Change in %: +0.11
Change in %: +0.41
As we identified last week, there seems a level in the market that finds regular support. Prices were around that basis last week and reacted accordingly with strong interest from China and Europe. This is seeing the market trade consistently within a fairly narrow range. The market might yet ease a little next week but will find some support if it settles within the recent range.
There are reports of more wool being held in store awaiting sale but with all commodity prices high and a ‘bumper’ season in Australia, growers are more likely to hold wool and continue to sell other commodities like meat and grain.
Auction offering – current week
Market Sale Offered Sold Passed In
North S 16 9682 9101 6.0%
South M 16 18197 17397 4.4%
West F 16 5225 4754 9.0%
Auction offering – next week
Market Sale Sale days Volume
North S 17 T / W 12639
South M 17 T / W 24132
West F 17 T / W 8984
If you want to see the complete Wool Sales Roster click here.